Shortly after the Fed's announcement, major banks began announcing that they were raising their prime lending rate from 3.25 percent to 3.50 percent. The prime rate is a benchmark for some types of consumer loans such as home equity loans.
The U.S. Federal Reserve is raising interest rates after seven years of record lows. But it's signaling that further rate hikes will likely be made slowly as the economy strengthens further and muted inflation rises.
The U.S. Federal Reserve is poised to raise interest rates Wednesday for the first time in 9-1/2 years. It may not take long to know whether its decision was correct. History is filled with cases when central banks raised rates prematurely, sometimes with dire consequences.
Main Street and Wall Street are fighting the U.S. Federal Reserve over municipal bonds—and they’re gaining ground.
Federal Reserve Bank of St. Louis President James Bullard said the Fed is “going to return to an era where there is a bit more uncertainty about what the committee is going to do, meeting to meeting.”
Federal Reserve Chairwoman Janet Yellen and New York Fed President William Dudley said the central bank could boost interest rates as soon as next month, while Fed Vice Chairman Stanley Fischer voiced confidence that inflation isn’t too far below the goal.
The Fed offered little clarity on the likely timing of a rate hike. Some Fed officials have signaled a desire to raise rates before year's end. But tepid economic reports have led many analysts to predict no hike until 2016.
In a lecture Thursday, Federal Reserve Chairwoman Janet Yellen suggested that global economic weakness won't likely be significant enough to dissuade the Fed from raising its key short-term rate from zero by December.
The Federal Reserve on Thursday decided to keep U.S. interest rates at record lows in the face of threats from a weak global economy, persistently low inflation and unstable financial markets.
Recent stock market turbulence hasn’t made members of the Federal Reserve abandon the idea of a slight rate increase as early as September.
Many analysts predict that if the economy keeps improving, the Fed will raise its key short-term rate in September. That rate has been held near zero since 2008.
The International Monetary Fund is downgrading its outlook for the U.S. economy this year and says the Federal Reserve should wait until the first half of 2016 to start raising short-term interest rates.
The Federal Reserve is edging closer to raising interest rates from record lows but Chairwoman Janet Yellen said she foresees no rate increase during the first quarter of 2015.
Federal Reserve Bank of St. Louis President James Bullard said market-based measures of inflation expectations have declined to low levels in recent months but have rebounded since mid-October.
The Federal Reserve will further slow the pace of its bond purchases because a strengthening U.S. job market needs less support.