A great deal of market attention has focused on the exact timing of our first increase in the funds rate, but what matters for overall financial conditions is expectations for the entire trajectory of short-term interest rates.
In that regard, most members of the FOMC anticipate that economic conditions are likely to warrant raising short-term interest rates at a gradual pace over the next few years. However, that is an expectation, not a commitment. Both the timing of the first rate increase and any subsequent adjustments to the federal funds rate target will depend critically on future developments in the economy.