Fed expects inflation ‘to move up’ in 2018, signaling March rate hike

• January 31, 2018
• realestatelife
• Announcements, Business & Markets, Real Estate, Real Estate Finance, Your Real Estate Life

The Federal Reserve on Wednesday left a key short-term U.S. interest rate unchanged, but the central bank also said it expects inflation “to move up this year” in a sign it’s likely to hike rates at its next meeting in March. The central bank said inflation is likely to stabilize around its 2% target, dropping prior language about a recent decline in prices. In another notable tweak, the Fed said “market-based measures of inflation compensation have increased in recent months.” Still, the Fed left its benchmark short-term rate at a range of 1.25% to 1.5%. In December, the central bank projected it would raise rates three times in 2018. The two-day meeting at the end of January was the the last for outgoing Chairwoman Janet Yellen. Fellow board member Jerome Powell will replace her on February 3.