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Utilities Stumble after Fed Delivers Third Rate Hike of 2018

Vincent Kruger
Utilities Stumble after Fed Delivers Third Rate Hike of 2018

Utilities, one of the most vulnerable sectors when it comes to interest rates, fell 1% after the FOMC (Federal Open Market Committee) increased the Fed funds rate by 25 basis points on September 26. The much-anticipated hike raised the rates to 2%–2.25%. It marked the third rate hike for 2018 and the eighth since the Fed started rate normalization in December 2015. Staying with its 2018 target, the FOMC projects one more rate hike this year and three rate hikes next year.