Will Infrastructure Spending Lead to a More Dovish Federal Reserve in 2017?
Expectations of infrastructure spending in 2017 are leading some investors to believe the Fed may not hike interest rates so fast in 2017.
Expectations of infrastructure spending in 2017 are leading some investors to believe the Fed may not hike interest rates so fast in 2017, as higher rates would increase the government's borrowing costs. The Fed is widely expected to announce a rate hike on Wednesday, but its 2017 rate projections will also be released. But Ahu Yildirmaz, head of the ADP research institute, isn't so worried. "Spending on infrastructure is going to increase the deficit, but on the other side, it's going to help the different sectors across the economy - construction is definitively one of them," she said, adding that infrastructure spending is set to create jobs. TheStreet's Scott Gamm reports from Wall Street.
