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Fed heading for faster-than-expected normalisation, says Fitch

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Fed heading for faster-than-expected normalisation, says Fitch

Fed heading for faster-than-expected normalisation, says Fitch

KUALA LUMPUR (June 15): Fitch Ratings said the U.S. Federal Reserve’s (Fed) interest rate hike and comments yesterday reinforced its view that U.S. interest rates will normalise faster than financial markets expect.

The Fed on Wednesday raised the fed funds target rate for the third time in seven months, to 1.00%-1.25%.

In a statement on its website yesterday, Fitch said the Fed also announced that it expects to start phasing out full balance sheet reinvestment in 2017 and provided details on the modalities of doing so.

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