Federal Reserve Hikes Rates, Signals Tighter Monetary Policy in 2017

The Federal Reserve hiked interest rates on Wednesday, the second increase in over a decade.
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The Federal Reserve hiked interest rates on Wednesday, the second increase in over a decade. But the central bank also telegraphed three rate hikes in 2017, compared to its previous forecast of two back in September. Nick Colas, chief market strategist at Convergex, says the rate increase was an endorsement of the economy. The Federal Reserve kept its 2017 inflation forecasts unchanged from September, despite the strong sense from investors that inflation will surge in the coming years amid tax cuts and infrastructure spending from the Trump administration. TheStreet's Scott Gamm reports from Wall Street.