Fed Officials May Be Forced To Boost Rates Faster Than Originally Forecast

Federal Reserve officials may be forced to increase the pace of interest rate hikes this year in response to the impact of expected fiscal stimulus from President-elect Donald Trump, the December minutes suggest.

Minutes from the Dec. 13-14 meeting were released today, revealing most officials worry future fiscal policies will spur faster growth than originally forecast, requiring quicker action. Most committee officials reiterated the need for gradual movement over the next few years.

The Fed moved interest rates a quarter percent last month, the first move central bankers have made since December 2015, and as Trump’s Jan. 20 inauguration fast approaches, experts are anticipating increased infrastructure spending, tax cuts and deregulation as promised by the president-elect to boost the economy over the next several years. [Bloomberg]

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