Monetary and Financial Update: Gradual Pickup in Private Sector Lending

The US Federal Reserve (Fed) raised the Federal Fund Rate (FFR) in December, and lowered its projections from three to two hikes in 2019. The latest survey data show that the market expects no further hikes in 2019. Therefore, we see a rising level of uncertainty in the Feds rate decisions in 2019, with a downside projection, as the Feds latest statement acknowledged the slowing in global growth.