"You don't need any intrigue or fundamental shifts in beliefs about the economy to realize why a rate increase might be likely," Johns Hopkins University professor and former Fed adviser Jon Faust said of the central bank's plans. "The Fed would just as soon be back to normal...Unless something really bad happens they will raise rates in March and that gets them on a path to raise rates more this year."
Investors cautious ahead of Fed
When Fed Chair Janet Yellen holds her first press conference of 2017 on Wednesday she can arguably declare a victory of sorts with an expected interest rate rise that will leave monetary policy looking increasingly normal. The rate increase expected on March 15 will be the second in four months, a pace unseen since the peak of the U.S. housing boom in 2006. A rate hike will also bring the Fed's target rate to between 0.75 - 1.00 percentage points, near the bottom of the range within which the Fed operated before the 2007-2009 financial crisis.
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