Fed policy more than optimistic; expect two more rate hikes: Seth Freeman

The Federal Reserve raised rates by 25 basis points and upgraded its economic outlook. The Central Bank also increased its rate-hike forecast for next year. In an interview to CNBC-TV18, Seth Freeman, CEO and Chief Investment Officer at EM Capital Management shared his views and outlook on the same.

The policy was a little more than just basically optimistic and it seems quite honest in terms of talking about the way in which our unemployment rate is way down, he said.

I would expect to see two more rate hikes. They are talking about potentially four (rate hikes) next year and if the Fed is going to continue to be very data sensitive and they are going to be looking at the effects of employment, I think that is going to be gradual, he added.

This is the sixth increase. Although the increase is baked in, overtime the cumulative effect could be very tough on mortgage rates, for consumers and overall corporate growth, said Freeman.

On equity markets, he said that it is interesting that there is more volatility and more activity as we get closer towards the announcement and we have probably more or less seen the impact today.

I would expect to see a gradual acceptance of this, he further mentioned.

For full interview, watch accompanying video…