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Fed still on track for another rate hike this year; yields move higher

Published 09/20/2017, 02:15 PM
© Reuters.  Fed still on track for another rate hike this year; yields move higher
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  • Taking a closer look at the economic projections, core PCE inflation is seen at just 1.5% this year, down 20 basis points from the June guess. Inflation is seen at 1.9% next year, down from 2% previously.
  • The median forecast for the Fed Funds rate at year-end stays at 1.4%, suggesting one more rate hike is in the cards. The median for 2018 is still 2.1%, pointing to roughly three rate hikes next year. 2019 is lowered to 2.7% from 2.9%.
  • Yields have moved a bit higher since the news hit, with the 10-year yield up 2.75 basis points to 2.276%. TLT -0.3%, TBT +0.6%. The two-year yield has risen to 1.43, its highest since July.
  • Gold (NYSEARCA:GLD) has lost a few dollars per ounce, now flat on the session at $1,311.
  • The dollar (UUP +0.4%) has strengthened a bit.
  • Janet Yellen's press conference begins at 2:30 ET. Check for live coverage on Seeking Alpha.
  • Previously: Fed leaves rates steady, dots shift lower, balance sheet trim starts in Oct. (Sept. 20)
  • Now read: Fed Day Follies - Dollar Falls In Anticipation Of More Free Money


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