Just coming across the Wires and the Business Networks, the Fed has increased the Federal Funds Interest Rates by 0.25% up to 0.75%. There was no dissent.
The Fed also expects 3 interest rate increases for 2017, which would be .25% each time. This would be a total rate by the end of 2017 at 1.5%.
America’s central bank is nudging its benchmark interest rate higher, announcing a move from the current 0.25-0.50 percent to a range of 0.50 and 0.75 percent. The decision emerged from a session of the Federal Open Market Committee Wednesday.
Analysts had widely expected the hike of a quarter of a percentage point, and with a low unemployment rate and signs of growth among workers’ wages, more boosts could follow in 2017. The Federal Reserve said today that its officials expect “only gradual increases in the federal funds rate.”
The vote to nudge benchmark interest rates higher was unanimous, the central bank says. The federal funds rate has fallen sharply since reaching its recent high in June of 2006, when the rate stood at 5.25 percent.
Janet Yellen speaks….
- Inflation to 2% over next two years
- Spending increases by income gains
- 15 million jobs added to economy from depths of recession
- The increase in the Participation Rate is largely from the aging population but little changed in last two years
- Job conditions will strengthen somewhat further
- Core Inflation 1.75%
- Solid improvement towards goals of maximum employment and 2% inflation
- Operation Twist continues