The Fed stuck to the script today, pushing ahead with another rate hike and signalling through the accompanying statement and economic projections that it will raise interest rates four times between now and the end of next year. We expect the Fed to continue hiking rates once a quarter, but by next year, the fading fiscal stimulus and rising interest rates will cause economic growth to slow below potential, which is why we forecast the fed funds rate to peak at 2.75-3.00% in mid-2019.
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