Rather than
the slow pace of rate hikes so far that has kept interest income at a low level, increase rates by a half or three - quarters of a percentage point in one shot.
Potential U.S. withdrawal from NAFTA and higher interest - rate sensitivity among consumers could
slow the pace of rate hikes.
The Fed has introduced a new wrinkle to the equation by suggesting that they may consider reducing their balance sheet later this year which raises the possibility that they may
slow the pace of rate hikes.
1) No change in the dot - plot: If the Fed does not change the projection for a total of three hikes in 2018, this means
a slower pace of rate hikes and a better environment for alternative assets such as cryptocurrencies.
Not only will more home construction lead to
a slower pace of rate hikes, it will also lead to faster economic growth.
Not exact matches
Most analysts expect the first
rate hike to come in September
of this year, but that the
pace of subsequent
rate hikes will be
slow, taking into account continued middling economic growth and below - target inflation.
World shares and bonds rallied on Thursday, after the Federal Reserve left U.S. interest
rates unchanged and
slowed the
pace of future
hikes, weakening the dollar and lifting commodity prices.
Fed officials have variously described the subsequent
pace of rate hikes as «gradual,» «shallow,» «
slow,» «halting» and even «crawling,» noted economists at Goldman Sachs.
For now, these factors suggest that the Fed will remain on pause for the next few months at least, the
pace of rate normalization will be
slow and the central bank will probably be limited to one, or even no,
hikes this year.
Federal Reserve Chair Janet Yellen will told a Congressional committee in December the U.S. economy faces a number
of global threats that could derail growth and compel the Fed to
slow the
pace of future interest
rate hikes.