The three main takeaways from today’s rate hike:
- The outlook for 2019 changed from three rate increases to two
- There are early signs of an economic slow down (2-yr. treasury at 2.65 is relatively close to the 10-yr. at 2.75)
- The Fed Chair Powell said the central bank would continue to shrink its balance sheet
The central bank took the target range of the benchmark funds rate to 2.25%-2.5%
Thomas Frank reports in CNBC.com that the Dow, Nasdaq and S&P 500 all hit new lows for 2018 after the Fed increased interest rates.