Wednesday, December 16, 2015
FED Raises Key Interest Rate for First Time in Almost a Decade
Today, for the first time in almost a decade, the Federal Reserve has raised interest rates. This highly anticipated move only comes because of the strength of our domestic economy. Unemployment has fallen to below five percent, a level historically consistent with a healthy economy. Inflation also remains somewhat low. However some areas of the economy are weak, like the recent drop in oil prices. The FED must keep an eye on the changes in the economy both domestic and globally. If they wait too long they risk losing control of inflation. http://www.nytimes.com/2015/12/17/business/economy/fed-interest-rates.html?_r=0
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4 comments:
Finally! It's about time the Fed raises the interest rate. In my opinion the Fed should have begun slowly raising it a long time ago when we first saw the signs of economic recovery. Hopefully there will not be an adverse consumer reaction to this increase.
Tax cuts are on the way as well with the GOP dominated house behind them.. I worry about a large spike in prices that consumers are not ready for as a result.
This act will influence a lot on Chinese currency, it is already 1:6.5 now, people forcasted that in March, 2016 the currency against Chinese Yuan and U.S. dollar will be 1:7
We have been waiting for this news for a while as there have been a lot of articles about the Fed expecting to raise interest rate. I think this is a good sign, indicating that the Fed feels confident about the economy; however, I still think they should take the approach of increasing it slowly to see how the economy will response.
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