With Fed expected to hike, attention turns to what it says

The real anticipation surrounds what Fed officials may or may not say about the pace of future rate hikes against the backdrop of Donald Trump's election.

Or will they say the risk of high inflation resulting from Trump's tax and spending plans may require accelerated rate hikes?

Investors have sent stock prices surging to record highs and driven up longer-term rates in anticipation that Republican control of the White House and Congress will allow Trump to cut taxes, ease regulations and accelerate infrastructure spending.

In her only public remarks since Trump's election, Yellen told a congressional committee last month that Fed officials will be monitoring Congress' actions and "updating our economic outlook as the policy landscape becomes clearer."

Rates on some other loans, though, like credit cards and home equity credit lines, will likely rise, though probably only slightly as long as the Fed's rate hikes remain modest.

[...] one current board member, Daniel Tarullo, who has taken the lead in implementing the Dodd-Frank financial regulation law, would likely leave if Trump chose a Dodd-Frank critic for the board position of vice chair for bank supervision.

Republican lawmakers want to subject the Fed's decisions to audits, limit its emergency loan powers and require it to use a formula in devising its rate policy.