US economy likely to record 2.4% growth in 2016

US Federal Reserve had many causes to hike its near zero interest rates almost after a decade, which marks beginning of its rate hike cycle, as Yellen announced that the rate hike path follows gradualism.

The focus now will be on the path ahead, after the initial move. Fed maintained that it will be mindful of the rates.

"On an annual average basis, the economy is expected to record growth of 2.4% in 2016 and 2.3% in 2017, a smidgen lower than 2.5% in 2015. This is due to the odd pattern of growth through the year - 2015 benefited from a particularly strong handoff and 2016 inherits a weaker one", says Economics TD in a research note.

Domestic demand, the most important aspect of the US economy, is likely be at a pace of 3% in 2016, which will provide Fed further opportunity to increase its policy rate.