January 31, 2018
The Federal Reserve nudged the rate-hike gauge higher by raising its assessment of inflation which now it sees moving to its 2 percent target sometime this year. Three rate hikes are already expected this year with a fourth the current question.
Stocks fell off moderate highs following the mid-afternoon FOMC statement then recovered into the close with the Dow ending at 26,149 for a 0.3 percent gain. The dollar index, which often moves up on rate-hike talk, moved lower to 89.12. The 2-year Treasury yield, which also moves up on hike talk, showed no afternoon reaction, holding at the morning level of 2.16 percent which however is still 3 basis points higher than yesterday.