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Economy

Markets see more rate hikes in the cards under Trump

New administration expected to end low-interest, low-inflation environment

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U.S. Federal Reserve Chair Janet Yellen   © Reuters

WASHINGTON -- With a solid jobs report paving the way for the first U.S. interest rate hike in a year, investors are looking ahead to 2017 and expecting to see faster tightening amid rising inflation under the new government.

A rate increase "could well become appropriate relatively soon," Federal Reserve Chair Janet Yellen told Congress last month, hinting at a potential further tightening of monetary policy when the Federal Open Market Committee meets Dec. 13-14.

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