The forecast from Kansas City Fed President Esther George: Despite blustery market, expect rate hikes.
George told a Kansas #business group that the stock market may have had a wild ride of late, but the #economy’s outlook remains strong, the Wichita Business Journal reports. She pointed to preliminary estimates of the gross domestic product growing at slightly less than three percent, low unemployment rates and signs of compensation increasing.
“The federal funds rate remains well below what estimates are that its longer-run value should be,” George said. “I’m often asked how many rate increases we’ll see this year. Together, the (Federal Open Market Committee) is calling for about three 25-basis-point hikes in the fed funds rate this year and about the same number next year.”