(Bloomberg) -- So much for bond traders’ speculation that Donald Trump becoming president would delay the Federal Reserve from deciding to raise interest rates. Now they’re wondering how many times policy makers could increase them in 2017.
Investors from Pimco to TIAA Global Asset Management see the surge in long-term U.S. Treasury yields that came after Trump’s election as a sign inflation will be on the rise. That means the long-dormant part of the Fed’s dual mandate could force policy makers to act more swiftly to raise borrowing costs than they have in 2016, when they held off time and time again after increasing their target rate to a range of 0.25% to 0.5% at the end of last year. Scott Mather at Pimco says the central bank may boost its benchmark three times by the end of 2017.