Afternoon Coffee: Fed Raises Rate; EU Issues Brexit Plan If No-Deal Crash Happens

The Federal Reserve on Wednesday raised the interest rate a quarter of a point to 2.5 percent, making it more expensive to borrow money, but it indicated that only two raises may happen next year instead of three, CNBC reports. It was the fourth increase this year.

The forecast also said the GDP is growing but not as much as expected for 2018 and 2019, CNBC reports.

The Fed’s plans for rates has been of keen interest, and President Donald Trump recently tweeted against the move.

An investment strategist offered this perspective: "While this was a dovish hike from the stance that the Fed was in before, this is somewhat not as dovish as many participants probably wanted," said Charlie Ripley, senior investment strategist for Allianz Investment Management. "It would have been a difficult move for the Fed to completely remove some of the 2019 hike expectations.”

14 Points Target Brexit

The European Union on Wednesday issued its Brexit plans if the UK doesn’t have a deal in place and crashes out of the EU in March, the BBC reports. The European Commission said it has begun measures to ease the burden if no deal is reached.

UK Prime Minister Theresa May and the EU have a deal but May doesn’t have enough support in Parliament to pass it. And the prospects for that to happen remain uncertain. But the EU’s plan focuses on 14 measures, targeting logistics, airline rights, customs and financial dealings.

"These measures will not — and cannot — mitigate the overall impact of a 'no-deal' scenario," the European Commission said in a statement.

Moving to Cloud? Prepare for Cost

Migration to cloud is all the rage for businesses, and saving money is a key factor — but a Bain & Co. report indicates that the way a company does it is also important, The Wall Street Journal reports. “Companies that migrate workloads “as-is” to the cloud — a strategy known as lift and shift — run the risk of losing most, or even all, of the hoped-for savings of winding down costly on-premise data centers, Bain & Co. reports,” the WSJ says.

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