The Federal Reserve is widely expected to raise the key interest rate later today in response to the bullish economy. If that happens, it will be the second consecutive raise following the December 14th decision that was viewed as a reaction to the pending inauguration of Donald Trump (and predicted on this site at the time). Now, a few short months into his presidency, the Trump economy has built on the pre-recession lows in unemployment we saw in December, and the Dow Jones continues to soar. So, while the December rate hike was just the second raise in a decade, market confidence in today’s expected hike is near total.

That confidence was reflected in the response researchers at Unanimous A.I. saw when they asked a swarm of Americans to predict whether or not the Fed would raise the rate. To find out, the group of nearly thirty people amplified their intelligence using our Swarm A.I. technology, which allows them to think together using a combination of real-time input and A.I. algorithms.

If the rate hike is a foregone conclusion ( with yet another hike expected later this year )  the better question becomes how the market will react, as reflected by the Dow Jones Industrial Average. For these insights, our researchers to a group of seasoned investors. In the Swarm A.I.’s experienced opinion, the market is likely to interpret the rate hike as a sign of strong indicators in both the United States and global economies, and so their expectation is that the Dow will actually rise a little on Wednesday, and even further by the end of the week. 

The goal of the Federal Reserve’s raising interest rates is to insure that a growing economy is not an unchecked economy. So, this series of expected hikes is a clear indication of the Fed’s confidence that the market will continue to grow, and a safeguard against the sort of wild exuberance that leads to chaos.

Here at Unanimous, we’ve been tracking the market in a weekly Financial Swarm that meets every Tuesday. If you’d like to join that group, please drop me a line

Got a question for the Swarm A.I., or just want to keep up to date with the swarm’s insights? Let us know…