Posted on 12/16/2015 1:07:38 PM PST by SeekAndFind
The Federal Reserve hiked interest rates for the first time in nearly a decade on Wednesday, signaling faith that the U.S. economy had largely overcome the wounds of the 2007-2009 financial crisis.
The U.S. central bank's policy-setting committee raised the range of its benchmark interest rate by a quarter of a percentage point to between 0.25 percent and 0.50 percent, ending a lengthy debate about whether the economy was strong enough to withstand higher borrowing costs.
"With the economy performing well and expected to continue to do so, the committee judges that a modest increase in the federal funds rate is appropriate," Fed Chair Janet Yellen said in a press conference after the rate decision was announced. "The economic recovery has clearly come a long way."
The Fed's policy statement noted the "considerable improvement" in the U.S. labor market, where the unemployment rate has fallen to 5 percent, and said policymakers are "reasonably confident" inflation will rise over the medium term to the Fed's 2 percent objective.
The central bank made clear the rate hike was a tentative beginning to a "gradual" tightening cycle, and that in deciding its next move it would put a premium on monitoring inflation, which remains mired below target.
"The process is likely to proceed gradually," Yellen said, a hint that further hikes will be slow in coming.
She added that policymakers were hoping for a slow rise in rates but one that will keep the Fed ahead of the curve as the economic recovery continues. "To keep the economy moving along the growth path it is on ... we would like to avoid a situation where we have left so much (monetary) accommodation in place for so long we have to tighten abruptly."
(Excerpt) Read more at in.reuters.com ...
U.S. economy performing well?
You mean with 94 million out of the labor force and Effective Unemployment Rate at 20% or more...???
I don’t know what world these clowns are living in.
So desperate are they to prop up Onambla it’s sickening.
The next year is gonna be even more fun than I thought. (see tag line)
Effective Unemployment Rate at 20% or more...???.....Try thirty percent and go north for the REAL figure.
Yes, I too, am beyond sick of hearing the lies constantly pumped outta D.C. and the MSM about a ‘recovery’. They are whistling past the graveyard.
Absolutely
Deflation is a B**ch.
There’s nothing that can be done about it.
Horde CASH !!!
The Feds have thrown in the towel in their race to the bottom.
The US Dollar will go substantially higher.
Oil lower
Gold Lower.
Virtually all commodities will go lower.
Horde cash and defer major purchases because those prices will be falling.
“You mean with 94 million out of the labor force and Effective Unemployment Rate at 20% or more”
Obama’s hand-picked thug says 5.4%. The entire government will have to be purged.
I am glad. I hope we will have real interest rates again. Banks need to go back to their core business of loaning money and paying interest on savings. Old people and fixed income people need to make money on their savings in a safe manner.
The zero interest thing has been an unnecessary distortion.
Wow you mean I might get $1.07 in interest versus $1.05?
I took a political survey today, and they were citing facts like “Obama’s recovery created 9 million jobs!” and “77 percent wage gap”. I rated it all poorly and then informed the questioner that most of those facts were NOT TRUE.
The only reason they are looking at raising rates is because negative interest rates are unsustainable.
Lets start a pool on what day Yellen has to take the .25 pt back. I say by Feb. :-)
“With the economy performing well and expected to continue to do so,”
This is a joke right?
maybe a good time to continue to short the Eur/USD.
went up 100 pips right after report then right back down 100.
Then look at the demographics and see who is doing all the work and paying the bills for all them welfare folks.
I can’t wait until the day after we get a president with an (R) after his name when all the media outlets will simultaneously discover we have a real krappy economy and immediately blame the republicans in general and the new president specifically
And the 15 year mortgage refi didn’t budge...how likely is that with a raise in the rate? Still at 3.16%, an extremely low rate.
What we are seeing now is more profiteering before the fleecing. They want a few more of your Billions into a promised "retirement" before they crash the videogame.
The fact that the pagan worshipers hang on this hag's every word and deed is a testament to how much they have sold their souls.
A Reckoning is coming.
Suddenly the unemployment rate will top 35% and those 90,000,000 unemployed will be discovered.
The Social Security 2016 Benefits Statements are hitting Mailboxes as we speak.
NO increase for 2016 because Inflation is ZERO according to the Overlords.
Funny how Interest Rates went up a day or two after those Statements were mailed. Just a coincidence I’m sure.
Anyone with Credit Card Debt will the first to notice...
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