Investors warned about what Federal Reserve could do in 2018


The Federal Reserve is expected to raise interest rates today, and investors may not like it one bit.

Not only are they expected to raise rates by a quarter if a point, but it looks like more is coming next year, and investors are being warned 2018 could see the biggest tightening of monetary policy in over a decade.

“There will probably be a market shock after the announcement. Financial investors that buy stocks do not like higher interest rates,” Economist Hank Lewis with Lone Star College explained.

Lewis tells KTRH this won't only have an impact on the stock market. Everyone will feel the effects of this. In other words, you may not see an increase in your salaries next year.

“A lot of that depends on sales and how those companies perform. That’s kind of the wild card right now,” Lewis stated, adding that companies will have to pay more interest, and may decide to hold off on new projects, which could impact new hires as well.


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