The economy got an early Christmas present from the Federal Reserve. Ryan Gaumont reports that on Wednesday, the Federal Reserve raised its key interest rate from a range of 0% to 0.25% to a range of 0.25% to 0.5%. The Fed has discussed raising the rate for months, and experts have predicted such an increase for several months. See LBN’s September report on the subject.
Federal Reserve chief Janet Yellen said that “the Fed’s decision today reflects our confidence in the U.S. economy.” The anticipation is that inflation will meet the 2% objective. The small rate hike will affect millions of Americans, including investors, home buyers and savers. Those who have savings accounts should see a little more interest on their deposits at the bank, but big banks didn't make any increases Wednesday. Mortgage rates will gradually rise.
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