Fed likely to press ahead with rate hikes despite Trump turmoil

The political brouhaha in Washington looks unlikely to blow the Federal Reserve off course from raising interest rates further 2017, starting with an increase next month and following up with another later in the year.

Fed watchers said the central bank will press ahead with plans to gradually normalize rates in order to rein in an economy that officials believe is growing above its potential and prevent an already-stretched labor market from becoming even tauter.

“Unlike in 2015 and 2016, the Fed has made pretty clear that it’s on a trajectory of tightening rates that will not likely be derailed,” said Jonathan Wright, a former central bank economist who’s now a professor at Johns Hopkins University.

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