News

Law

Asset Management

Investment Banking

Wealth

Hedge Funds

People

Newsletters

Events

Lists

Asset Management

Market feels a cold draft as Fed leaves door open to more hikes

Fed judges 'further gradual' hikes to be consistent with its optimistic economic outlook for 2019

Federal Reserve chari Jerome Powell
Federal Reserve chari Jerome Powell Photo: Getty Images

The Federal Reserve’s latest monetary policy decision disappointed risk markets on several counts.

While the one-quarter percentage point increase in the Fed’s key federal-funds target rate, to 2.25%-2.50%, was what most market participants and forecasters had anticipated, the policy-setting Federal Open Market Committee said it still “judges that some further gradual” rate hikes would be consistent with its optimistic economic outlook for 2019.

WSJ Logo