The Fed surprised markets by forecasting three interest rate hikes next year, and that number could increase even more once President-elect Donald Trump takes office.
The Fed Wednesday raised rates for the second time in 10 years boosting their short-term interest rate target by a quarter point to 0.50 to 0.75 percent.
In forecasts released after its meeting, Fed officials also indicated that they could hike the fed funds target rate three times next year, instead of the two quarter-point increases previously forecast for next year. They also raised the forecast for future years to three hikes in both 2018 and 2019.
