Did The Feds Raise Interest Rates

The Federal Reserve’s rate-setting committee raised the federal funds target rate by a quarter-point to a range of 0.5% to 0.75% at its December meeting. The Fed had left rates unchanged at 0.25%-0.5% since December 2015 when it raised rates for the first time in nearly a decade.

In a news conference following the announcement Fed Chair Janet Yellen said the decision reflects the economy’s continued progress in recovering from the Great Recession.

“The simple message is the economy is doing well” she said. “We have seen increasing evidence that it’s continuing to do well.”

Yellen added that the Fed still expects to raise rates gradually in response to an improving economy and labor market. But she cautioned that the economy could be slower to improve than the Fed anticipates.

“As always there is no preset path for policy” she said.

See also  What Is Spider Man Rated

The Fed’s rate hike decision was widely expected by economists and financial markets. The federal funds rate is the interest rate at which banks lend to each other overnight. It influences other borrowing rates including those for business loans credit cards and home equity lines of credit.

On average economists expect the Fed to raise rates three times in 2017. The Fed’s next meeting is scheduled for Jan. 31-Feb. 1.

Why did the Federal Reserve raise interest rates?

Answer: The Federal Reserve raised interest rates because inflation was beginning to increase meaning that prices were rising and the value of the dollar was decreasing.

How will the interest rate hike affect consumers?

Answer: The interest rate hike will cause the cost of borrowing to increase which will affect consumers who have variable rate loans or credit card debt.

How will the interest rate hike affect businesses?

Answer: The interest rate hike will cause the cost of borrowing to increase which will affect businesses that have variable rate loans.

How will the interest rate hike affect the stock market?

Answer: The interest rate hike will affect the stock market because it will cause the cost of borrowing to increase.

This will make it more expensive for companies to borrow money and could lead to a decrease in the stock prices.

How will the interest rate hike affect the housing market?

Answer: The interest rate hike will affect the housing market because it will cause the cost of borrowing to increase.

See also  Do Rats Dig Holes In Yard

This will make it more expensive for people to get mortgages and could lead to a decrease in the housing prices.

How will the interest rate hike affect the economy?

Answer: The interest rate hike will affect the economy because it will cause the cost of borrowing to increase.

This will make it more expensive for businesses to borrow money which could lead to a decrease in economic activity.

What is the Federal Reserve’s target inflation rate?

Answer: The Federal Reserve’s target inflation rate is 2%.

What is the Federal Reserve’s target interest rate?

Answer: The Federal Reserve’s target interest rate is 2%.

What is the Federal Reserve’s dual mandate?

Answer: The Federal Reserve’s dual mandate is to promote maximum employment and price stability.

What is the Federal Reserve’s Monetary Policy Committee?

Answer: The Federal Reserve’s Monetary Policy Committee is the group of officials that sets interest rate policy.

Who is the current chair of the Federal Reserve?

Answer: The current chair of the Federal Reserve is Jerome Powell.

Who appoints the members of the Federal Reserve?

Answer: The members of the Federal Reserve are appointed by the President of the United States.

How often does the Federal Reserve meet to set interest rates?

Answer: The Federal Reserve meets eight times a year to set interest rates.

How does the Federal Reserve change interest rates?

Answer: The Federal Reserve changes interest rates by buying and selling government bonds in the open market.

What is the Federal Reserve’s balance sheet?

Answer: The Federal Reserve’s balance sheet is a list of all the assets and liabilities that the Federal Reserve owns.

Leave a Comment