Donald Trump's plans to grow the economy through a surge in public spending figured into Federal Reserve officials' expectations for three rate hikes next year, central bank Chair Janet Yellen said Wednesday.
The Fed approved its second rate hike in a decade Wednesday and delivered a slight shock to the market with projections that there could be three more moves in 2017, as opposed to previous indications of just two.
Asked whether the president-elect's proposals influenced the decision, Yellen said there was some discussion in that respect.
"Some of the participants but not all of the participants did incorporate some assumptions of the change in fiscal policy into their projections," she said at her quarterly news conference. "That may have been a factor that was one of several that occasioned these shifts."