Stocks Move Higher as the Fed Puts the Brakes on Rate Hikes

The Federal Reserve has lowered its projections for interest rate increases in 2016, now forecasting that there will be only two rate hikes this year. ‘I think we should be relieved. I think even when the Fed made its projections in December, four rate increases this year was unrealistic. I don’t think markets were expecting that at all,’ said Gus Fauscher, Deputy Chief Economist at PNC. ‘I think particularly given the turmoil we’ve had in global financial markets this year, the Fed wants to take it more slowly.’ Fauscher said two rate increases would be a more realistic tightening path. As expected, the Fed held rates steady at its latest meeting.