Why the Federal Reserve Is Likely to Hike Rates Twice in 2017
One analysts expects the Fed to hike interest rates only twice in 2017.
The Federal Reserve left its benchmark interest rate unchanged on Wednesday, but uncertainty surrounding the new presidential administration is likely to prompt the Fed to hike rates twice in 2017, down from the three hikes the Fed telegraphed in December. That's the assessment from Nick Colas, chief market analyst at Convergex.
Colas acknowledged the rising pace of inflation. The personal consumption expenditure price index rose 1.6% year over year as of December. On a core basis, the PCE increased 1.7% -- close to the central bank's 2% target.
