Tightening situation

19 December 2018 By Gina Chon Follow @GinaChon

The U.S. central bank raised rates despite criticism from President Trump. Slowing growth and bearish markets will only complicate its task going forward. The chairman will give more public talks in 2019 just as it gets harder to offer guidance. It could be a bumpy ride.

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The U.S. Federal Open Market Committee said on Dec. 19 that it would raise its target range for the federal funds interest rate by a quarter point, to between 2.25 percent and 2.5 percent. It was the ninth such increase since the Fed began tightening in December 2015.

The central bank also released updated economic projections from Federal Reserve Board members and regional bank presidents, with their median forecast for the end-2019 federal funds rate put at 2.9 percent, down from a previous estimate of 3.1 percent.

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