Finally! Fed Raises Interest Rates

[ronitreddy]

America's first interest rate hike in nearly a decade is here.

 

The Federal Reserve raised its key interest rate on Wednesday from a range of 0% to 0.25% to a range of 0.25% to 0.5%.

The rate hike is a small one, but it will affect millions of Americans, including investors, home buyers and savers. Savers will eventually see a little more interest on their deposits at the bank, and mortgage rates will gradually rise.

 

The move was widely expected. It is a sign of how much the economy has healed since the Great Recession. The central bank believes the U.S. economy is strong now and no longer needs crutches.

 

Fed chief Janet Yellen said during a press conference that the move "marks the end of an extraordinary period" of low rates designed to boost the recovery from the Great Recession.

 

Related: What a Fed rate hike means to you

Yellen said the U.S. economy is "performing well" and the rate hike reflects confidence the recovery will continue to strengthen.

The Fed telegraphed it will be patient with future rate increases so as not to kill the economic recovery. The central bank's statement said the economy will only merit "gradual increases" in rates, which are likely to remain low "for some time." Yellen repeatedly said during the press conference that future rate hikes will be "gradual."

 

Stocks rallied with the Dow rising over 100 points after the announcement.

Investors were pleased to see that the Fed expects "only gradual increases" in rates next year and that the committee explicitly said it would take into account "readings on financial and international developments."

 

Related: Wall Street celebrates Fed rate hike

The Fed put interest rates near zero during the financial crisis in December 2008 to help stimulate the economy and boost the collapsed housing market.

 

But the economy is no longer in crisis. In fact it is a lot healthier -- unemployment now is at 5%, half of the 10% rate it hit in 2009 during the worst of the jobs crisis.

 

Over 12 million jobs have been added since the recession ended. Wages -- which have barely grown during the recovery -- have also started to pick up recently.

 

On Wednesday, the Fed's committee improved its economic outlook. Compared to its last forecast in September, the Fed raised its expectations for growth next year to 2.4%, up from 2.3%. It also lowered its projection for unemployment in 2016 to 4.7%, down from 4.8%.

 

The Fed still has low expectations for inflation. The central bank has two goals: low unemployment and stable inflation. The Fed's target for inflation is 2%, but right now it's close to zero. The Fed sees inflation inching up in the years to come, but not hitting 2% until 2018.

 

Known as "liftoff," the Fed's action is expected to be the first of more rate increases that will probably come in 2016. The last rate hike was June 2006.

 

 

Source: http://money.cnn.com/2015/12/16/news/economy/federal-reserve-interest-rate-hike/

[sanbk]

ippudu new loan tesukune vallakaaa

[aragorn]

e 0.25 ke intha hadavidee, continious ga penchithe point vundhi kanee.......e 0.25 a care emi effect avadu   :3D_Smiles_38:

[aragorn]

ippudu new loan tesukune vallakaaa

 

bank 2 bank overnight loans kee so adhi manakee koda effect avathadhi

[k2s]

mari basic pay, salaries, bonuslu kuda increase sethunnara ? 

[aragorn]

mari basic pay, salaries, bonuslu kuda increase sethunnara ? 

 

ask ur boss thatha. baga balisee vunnaru wallets, econ adhe withstand aveedhi maa support akarla ani fed raise chesindhi thatha :5_2_108:

[aragorn]

New projections show officials expect their benchmark rate to creep up to 1.375% by the end of 2016, according to the median projection of 17 officials, to 2.375% by the end of 2017 and 3.25% in three years. That implies four quarter-percentage-point interest rate increases next year, four the next and three or four the following.

 

 

 

[aragorn]

That is a slower pace than projected by officials in September and much slower compared to earlier series of Fed rate increases. In the 2004-06 period, for example, the Fed raised rates 17 times in succession, an approach Fed officials don’t intend to repeat. In September seven Fed officials believed the fed funds rate could rise to 3% or higher by 2017; now just four do.

[aragorn]

When the Fed moves next will depend importantly on how inflation evolves. The Fed’s preferred measure of inflation has run below its 2% objective for more than three years. The central bank focused extra attention on the inflation outlook in its statement, saying it would “carefully monitor” actual and expected progress toward the goal. This point implied the Fed will be reluctant to raise rates again unless it sees inflation actually moving up. For now, officials said they were “reasonably confident” inflation would rise.

[Balibabu]

mari basic pay, salaries, bonuslu kuda increase sethunnara ? 

 

uhu

[ronitreddy]

mari basic pay, salaries, bonuslu kuda increase sethunnara ? 

Inkem kavali daddy neeku

[Balibabu]

Inkem kavali daddy neeku

 

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[k2s]

ask ur boss thatha. baga balisee vunnaru wallets, econ adhe withstand aveedhi maa support akarla ani fed raise chesindhi thatha :5_2_108:

 

 

uhu

 

 

Inkem kavali daddy neeku

ekkuva emi oddu man.. pani ki thaggattu phalitham isthey chalu.. 

[ronitreddy]

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[ronitreddy]

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