Fed Raises Interest Rates, First Rate Hike This Year
The Federal Reserve raised interest rates by a quarter-point, its first rate hike this year, in a decision that was widely anticipated by markets.
The Federal Reserve raised interest rates by a quarter-point, its first rate hike this year, in a decision that was widely anticipated by markets.
The Federal Reserve raised its benchmark rate for the second time in three months, this time to a range between 0.75% and 1%.
The Federal Reserve left interest rates unchanged at its latest meeting and noted the economy slowed down at the end of last year. Stocks traded lower with the DJIA down 220 points by market close.
Reuters reported that major U.S. banks raised their prime rates for the first time since 2006 following a rate hike from the Federal Reserve.
According to Bloomberg, Bank of America says a ‘great divorce’ between the economies of the U.S. and China will fuel global currency and rates markets in 2016.
SNL Financial said new research on the U.S. bank sector indicates that higher interest rates are not a panacea for bank profitability as competition and regulation are likely to limit the benefit of rate increases.
The Wall Street Journal reported that the price of U.S. government debt declined for a second consecutive session, as interest rate sent the yield on the benchmark 10-year note to a one-month high.
Reuters reported the Fed kept interest rates unchanged at its most recent meeting, and in reference to its next policy meeting put a December rate hike firmly in play.
In a new report, Fitch Ratings noted that U.S. banks will continue to have their short and long-term business strategies affected by a “lower-for-longer” interest rate environment.
Bloomberg noted in a recent report that the Federal Reserve’s 2% inflation target looks a lot closer according to a price gauge favored by some policy makers.