The Federal Reserve raised rates for the second time this year and we believe they’re still on target to raise rates once more toward the end of 2017. The current overnight rate is set between 1 and 1.25 percent. However, the language in the Fed statement is more dovish than in previous meetings as they mentioned they are monitoring the lack of inflation data. They also stated that they want to start to lower the balance sheet that would ultimately be hawkish to the market.
There is something for everyone in the statement which have had zero effect on interest rates immediately after the announcement. The market and the Fed seem to be on the same page and all of their moves are already priced in.
Going forward, it seems as though we will have to achieve some sort of new Fiscal policy in order to see rates jump much higher. Interest rates have now returned to levels previously seen by the economy, before there was any hope of increased Fiscal policy.