The Federal Open Market Committee meets this week, and while a rate hike is widely expected, and priced in, the municipal market will look to the Summary of Economic Projections for the future path of rates.
It’s simple: the FOMC will raise rates 25 basis points to a 1.5% to 1.75% range.
Where is gets complicated is the new Summary of Economic Projections.
Will the dots say three, as many believe, or will growing expectations of four hikes come to fruition?
What will Fed Chief Powell say in his first press conference? Expect such the same as in his testimony before Congress.
Headwinds are turning to tailwinds, and the FOMC hopes to keep the economy from overheating while bringing inflation to target.