The Federal Reserve raised the overnight funds rate 25 bips as expected. In other words, even if the economy slows, the Fed funds rate is going higher. We still anticipate two more rate hikes this year and one additional rate hike in 2019," he says. As he put it: 'if the economy (stocks) do well, the pace of rate hikes could be less gradual, but if the economy (stocks) slows down, then the pace of rate hikes could be more gradual'. "If we are right, then policymakers may decide that fewer rate hikes will be necessary than the current projection of three rate hikes in 2019 and two more in 2020," says Logan.

Source: Forbes March 22, 2018 13:02 UTC