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By Dr. Thomas GITZEL, Chief Economist, VP Bank Group
As expected, the US Federal Reserve is continuing to move forward, raising the Fed funds rate target range by 25 basis points. The interest rate hike was no surprise, as the financial markets were firmly expecting the move. As always, market participants are primarily interested in the future outlook of the central bankers and wording. Nothing has changed with regard to the so-called "dots", i.e. the median estimate of the Fed officials still envisages a further interest rate hike in the current year and the interest rate screw is to be tightened three times in the coming year.
Another interesting aspect is that the Fed deleted the word "accommodating" from its press statement. From the...
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