Fed raises rates for the second time in a decade

Fed raises rates for the second time in a decade

On Wednesday the Federal Reserve came to a unanimous decision and announced the much anticipated interest-rate hike. They increased its target range from .25 percent to 0.5 percent to 0.5 percent to .75 percent. This hike is the second hike in almost a year, the first hike was in December 2015 after a nine-year hiatus of no rate hikes. The hike has been widely expected as market conditions and economic outlook look healthy and has signaled increased improvement. With the surge of the dollar and numerous job reports that indicate a decrease in unemployment have all helped make this rate hike possible. The unemployment rate is now at 4.6 and in November 178,00 jobs were added. Reactions to the rate hike were well received with the stock market remaining stable as well as the dollar continuing its steady increase. Three more rate hikes are expected in 2017, signaling that the continuation of the upward movement of the economy.

 

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