Weekly Market Commentary 06/16/2017

The Federal Reserve, as expected, hiked the federal funds rate by a quarter-point this week, bringing its key policy rate up to 1.00-1.25%. While the move was widely expected, it comes in the face of a raft of disappointing economic data and an inflation rate that remains stubbornly below the Fed’s desired target. Still, the central bank is sticking to its guns, asserting that the economy is in a good place, bolstered by a strong job market, and expects inflation to eventually move up to its 2% target. Hence, it is sticking with its plan to hike rates once more this year, and expects to push through three more increases next year.