29 Mar BEIGE BOOK: WINDOW ON MAIN STREET

BEIGE BOOK SUGGESTS CONTINUED MODERATE ECONOMIC GROWTH
The Federal Reserve (Fed) was in the news last week, as markets digested the
March 20–21 Federal Open Market Committee (FOMC) meeting statement.
The outcomes of the meeting were broadly in line with market expectations,
with the Fed hiking interest rates by 0.25%, and upgrading its economic forecasts
as the impact of tax reform was included for the first time. The law had not yet
passed when the Fed released its previous forecasts on December 13, 2017. The
Fed’s forecast of the future path of interest rates (commonly known as dot plots)
showed an expectation of three rate hikes in 2018 (in line with LPL Research’s
view), and another three to four in 2019, which was higher than the Fed’s previous
expectation of two. But the latest FOMC meeting statement wasn’t the only
noteworthy release; the Fed also published its latest Beige Book on March 7,
which continued to deliver a positive view of the U.S. economy.

View the full weekly economic commentary here.

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