Weekly Market Commentary 03/17/2017

Having prepared the financial markets for weeks that a rate hike was coming, the Federal Reserve followed through this week with its second quarter-point increase in its benchmark federal funds rate in three months. Despite the back-to-back hikes coming out of two consecutive policy meetings, this was only the third rate increase in more than ten years, with the first coming more than a year ago and the second last December. The three moves bring the policy rate up to a range of 0.75%-1.00%. By any measure, this tightening cycle is progressing more like a turtle than a hare. That said, the pace of rate hikes is poised to accelerate going forward.