The U.S. Federal Reserve has hiked rates by 25 basis points on Wednesday, as anticipated. While Janet Yellen eluded to stronger jobs data in her speech after the rate hike decision, independent investment consultant Hans Goetti said he does expect the world's most powerful central bank to turn dovish here on, as inflation remains soft.
Donald Trump's ambitious plans of bringing down corporate tax rates and increasing infrastructure spending, has been held hostage by all the political events unfolding in the U.S., said Goetti in an interview to BloombergQuint. This is going to delay growth recovery, forcing the Fed to turn cautious for some time to come.
The Fed has realised the fact that inflation will stay down for a while, even though the labour market is strong, so they will have to be more dovish for the next few months.Hans Goetti, Independent Investment Consultant
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