Saturday 10 December 2016

Hawkish Fed a potential speed bump for stock bulls

Next week's Federal Reserve meeting and possible signals on the pace of rate hikes for next year could pose the biggest risk yet to the rally the US stock market has seen since last month's presidential election. While investors have long anticipated the Fed will raise rates at the December 13-14 meeting - in what would be its first such move in a year and second in nearly a decade - the worry for some stock investors is that the Fed takes a more aggressive stance on inflation and future hikes. 

Stocks have set a string of record highs since the November 8 election on hopes of a pickup in US economic growth, thanks to President-elect Donald Trump's promises of increased infrastructure spending, lower taxes and easier regulations. US investors seem optimistic about prospects of future growth, but the question remains if the Fed does as well.


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