If there has been one constant over the last decade since the financial crisis, it has to be the Federal Reserve.
After cutting rates to basically zero in the wake of the crisis, the Fed has done pretty much everything in its power to keep those rates as low as possible since the end of the recession. From bond buying sprees to keeping swap lines open, we’ve had the luxury of living in a low rate world for longer than anyone had anticipated.
But all of that seems to be changing. Thanks to the growing economy, the Fed has once again gone back to business as usual. Rate hikes have once again become the norm. The problem is, no knows exactly what the Fed will do in the new year. Will we get a smooth path like we have had before or will inflation-targeting get the best of the central bank and bring on rate hikes in droves?
Investment bank State Street has some answers on what investors might expect from the Federal Reserve this year.
