Federal Reserve Board Chair Janet Yellen, center, sits between board Vice Chair Stanley Fischer, left, and member Daniel Tarullo during an open meeting in Washington, Thursday, Dec. 15, 2016.Cliff Owen/AP
At 2 p.m. ET, the Federal Reserve will release minutes of the meeting the Federal Open Markets Committee (FOMC) held in December.
After much insinuation, the FOMC voted unanimously to raise its benchmark interest rate at that meeting. At the same time, futures traders had priced in a 100% chance that the Fed would raise interest rates.
By raising rates, “my colleagues and I are recognizing the considerable progress the economy has made towards our dual objectives of maximum employment and price stability,”Fed Chair Janet Yellen said during a press conference after the meeting.
Yellen’s press conference dwelt considerably on the possible impact of President-elect Donald Trump’s administration on the Fed and the economy. Nobody — including Yellen — really knows what Trump will end up doing. And so, many of her responses reflected that uncertainty.
“Of utmost importance will be any discussion over the impact President-elect Trump’s prospective policy agenda will have on the US economic outlook and on future monetary policy plans,” said Sam Bullard, a senior economist at Wells Fargo, in a preview.
If economic growth and inflation take off amid Trump’s fiscal policy, the Fed may be prompted to review its trajectory for interest rates and forecasts for growth. However, its outlooks for growth, inflation, and unemployment were largely unchanged in December from September. That suggested that unlike markets, the Fed did not turn much more bullish after the election.
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