Fed Hikes Rates For Third Time Since Financial Crisis, Sees More In 2017
Wednesday, March 15, 2017 at 10:39PM
The Fed hiked rates for the first time this year on Wednesday, in a widely expected move that reflects continued confidence in the state of the American economy.
At the conclusion of their two-day meeting, the Federal Reserve’s Open Market Committee kicked their benchmark interest rate up by 25 basis points to between 0.75% and 1%. The decision was supported by all members of the policy-making committee except the Minneapolis Fed's Neel Kashkari.
This is the second time the Fed has increased rates since December and the third time since the financial crisis.
Investors were convinced of the move and the market was pricing in a 95% chance of a rate hike, according to CME Group's FedWatch tool. Federal Reserve chair Janet Yellen and other members of the Fed had strongly suggested in recent weeks that the time had come.
In explaining their decision, the Fed said in a statement that "the labor market has continued to strengthen and that economic activity has continued to expand at a moderate pace." The central bank stuck to its forecast of three rate hikes in 2017.
gold jumps despite the threat of 3 rate hikes this year...
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