Talk Building for Two Fed Rate Rises

While consensus for the first U.S. Federal Reserve rate rise is leaning towards September, a growing number of market watchers are suggesting that, before the year is out, two interest rate hikes rather than just one could be on the cards.

The Fed will meet Tuesday and Wednesday for its closely watched Federal Open Market Committee (FOMC) meeting and the statement that follows. While policy makers are not expected to make any major decisions this week, investors will be looking for hints on the Fed’s timing for possible future rate movements.

A number of officials from the central bank have already suggested that two rate rises are possible this year, but economists and investors assessing the economic data are now also leaning in favor of two hikes.