Fed raises rates by 0.25% after seven years at zero
03:00 PM 12/16/2015
As it was expected today December 16, 14:00 EST Fed raised rates by 0.25%.
The important is not only the rates increase but also comments at the press release and during the press conference.
There are two important points in the press release...
1) The word gradual in relation to the following possible rates increases - which means there would not be fast rates increases.
The Committee expects that economic conditions will evolve in a manner that will warrant only gradual increases in the federal funds rate; the federal funds rate is likely to remain, for some time, below levels that are expected to prevail in the longer run. However, the actual path of the federal funds rate will depend on the economic outlook as informed by incoming data.
In determining the timing and size of future adjustments to the target range for the federal funds rate, the Committee will assess realized and expected economic conditions relative to its objectives of maximum employment and 2 percent inflation.
