16 Dec US Fed Raises Interest Rate (USD/CAD)
The Federal Reserve has raised the interest rate for the first time since 2006 by 0.25%. The Fed’s decision lifts its targeted rate range to 0.25% to 0.50% from the current 0% to 0.25%. The key signal from the policy-makers was that they will “gradually” raise rates. The rate rise was expected, what investors are focusing on is what Janet Yellen, central bank’s chairman, had to say which foreshadows future rate hikes, economic expectation and other leading indicators for the US economy. Some of the main questions investors are asking now are:
How much farther will the rate rise, and how quickly?
Is the US economy growing enough to absorb the higher rate?
What does the increase in cost of borrowing mean for the markets?
No Comments