The central bank chose to raise rates again despite an economic slowdown at the start of 2017, which it predicts will prove temporary. The Fed also announced plans to start gradually paring its bond holdings later this year, which could cause long-term rates to rise. The latest Fed rate hike, announced in a statement after a policy meeting, comes as the U.S. economy is growing only sluggishly. That said, no one expects the Fed’s rate hikes to turn aggressive. By contrast, “doves” favour the direction taken under Chair Janet Yellen, favouring relatively low rates to maximize employment.

Source: thestar June 14, 2017 18:49 UTC