US Fed ups rates, eyes three hikes in 2018

Federal Reserve officials followed through on an expected interest-rate increase and raised their forecast for economic growth in 2018, even as they stuck with a projection for three hikes in the coming year. 

“This change highlights that the committee expects the labour market to remain strong, with sustained job creation, ample opportunities for workers and rising wages,” Chair Janet Yellen told reporters Wednesday in Washington following the decision. In her final scheduled press conference, Yellen noted that her nominated successor, Jerome Powell, has been part of the consensus shaping the Fed’s gradual rate-hike strategy.

In a key change to its statement announcing the decision, the Federal Open Market Committee omitted prior language saying it expected the labour market would strengthen further. Instead, Wednesday’s missive said the monetary policy would help the labour market “remain strong.” That suggests Fed officials expect improvement in the job market to slow.