The Federal Reserve increased interest rates by 0.25% yesterday to 1.5%. The move was largely expected and the markets had priced a hike in. In her final speech as Fed Chair, Janet Yellen suggested that the policy outlook for 2018 and beyond would remain unchanged.
It will be interesting to see if the Fed’s position changes when Jerome Powell replaces Yellen next year. Powell is the first Fed Chair without an economics degree for 30 years and was drafted in as Trump ‘wanted a Republican’ as Chair.
Today we have the jobless claims, retail sales and a raft of purchasing managers; index data. All are expected to increase slightly.