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 ...
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...
When I see a range compression of price action I can’t help but to see a war.
Two armies going to war with a nearly unlimited arsenal of money and conflicting views but always ready to step aside, take the loss in order to fight another day.
A US rate increase will put the EUR/USD at 1.00 or lower.
There is nothing that can stop this.
Everything in between are just tactical skirmishes in an effort to balance the books.
good to short the Eur/Usd.
And with that new mope in canada, shorting their currency will make a few bucks in the future.
If there had been a real recovery, they wouldn’t have to be talking about it now.
More propaganda and lies. They’re trying to make everyone think everything is OK with this move. Wait until sales roll in around January / February.
One guy is saying hold off all major purchases until at least January.
ABC, I think, was pimping what a boost this was to savers.
Please.....
I’m in. January, it will retract within 20 days.
I say, they’ll tough it out until March. Then, have to “rescue” the economy, creating over 300 billion jobs in America. Chris Matthew’s leg will have a thrill run up it yet again.
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