US FED raises federal funds rate by 25bp

CNC
Added On December 17, 2015

The U.S. Federal Reserve announced Wednesday its first interest rate increase in more than nine years, marking the end of an era of extraordinary easing monetary policy.

 
The Fed raised its benchmark federal funds rate by a quarter point to 0.25-0.5 percent.
 
U.S. Fed Chair Janet Yellen said this action marks the end of an extraordinary seven-year period during which the federal funds rate was held near zero to support the recovery of the economy from the worst financial crisis and recession since the Great Depression.
 
The move was widely expected.
 
Fed officials expected the economy will continue to expand at a moderate pace and labor market will continue to strengthen, with the gradual adjustments in the stance of monetary policy.
 
According to a projection report released on Wednesday, Fed officials expected the U.S. economy will grow 2.4 percent in 2016 and the unemployment rate will further fall to 4.7 percent next year.