Fed Raises Funds Target Rate As Expected, Nudges Down Expected Hikes For 2019

The Federal Reserve has stepped slightly from its rate-hike intentions, producing an FOMC statement that is little changed but nudging down expected rate hikes in 2019 from three 1/4 point moves to now two 1/4 point moves. As expected, the Fed has raised its funds target range by 1/4 point to 2.25 to 2.50 percent with an implied target at 2.375 percent. FOMC forecasts sees funds target at a median 2.9 percent by the end of next year vs 3.1 percent in the last set of FOMC forecasts back in September. Like all the meetings this year the vote was unanimous, 9 to 0.