The US Federal Reserve decided yesterday to hike short-term interest rates for the third time in 2017, raising them by a quarter point as expected. The Fed has said to watch out for “more increases to follow in 2018 as Janet Yellen prepares to hand over the chair amid robust hiring and surging financial markets,” notes The Financial Times (paywall). “The Committee continues to expect that, with gradual adjustments in the stance of monetary policy, economic activity will expand at a moderate pace and labour market conditions will remain strong,” it said in a statement. “In determining the timing and size of future adjustments to the target range for the federal funds rate, the Committee will assess realized and expected economic conditions relative to its objectives of maximum employment and 2% inflation.” Bloomberg is tipped three rate hikes in the new year.