US stockmarkets fall to one-year lows despite Fed rate hike

September 2017 lows

The Federal Reserve raised interest rates for the fourth time this year but lowered its projections for future hikes next year.

As markets had anticipated, the Federal Open Market Committee (FOMC) increased the funds rate to between 2.25% and 2.5%, however it lowered its expectations from three rate rises in 2019 to two. Despite the lowering of 2019 hike expectations, the Fed retained its comment that it would see "further gradual" rate rises. The FOMC said in the statement: "The committee judges that some further gradual increases in the target range for the federal funds rate will be consistent with sustained expansion of economic activity, strong labour market conditions, and inflation near the committee's ...