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  • Fed raises interest rates 0.25%
  • Premier Icon footflaps
    Full Member

    Interesting move given unemployment is still high and inflation below target…

    http://www.theguardian.com/business/2015/dec/16/federal-reserve-us-interest-rate-rise-fed-funds-janet-yellen

    Premier Icon jambalaya
    Free Member

    They’ve been pushing the rate rise back month after month. Many thought it would be as soon as June.

    US recovery has been a lot more vibrant than in the UK and the EU still sick, a US rate rise is overdue. My 2 cents.

    Premier Icon teamhurtmore
    Free Member

    Stealing less, good….

    Premier Icon Dobbo
    Full Member

    As per jambalaya it’s a positive sign that the US economy is fairly strong, the uncertainty of when it will happen has rumbled on too long.

    Forward guidance is also a good thing, and the fed has said it will slowly rise up to around 3.5%.

    Premier Icon mikewsmith
    Free Member

    Positive for the US, interesting for all those that the US owns the debt for such as a bunch in SE Asia, their bills just went up.

    Premier Icon Hobster
    Full Member

    How long until QE starts again?

    Premier Icon footflaps
    Full Member

    Positive for the US

    That is TBD, it might knock growth back a bit as exports will be more expensive…

    Premier Icon Dobbo
    Full Member

    But the other side is stronger $ so imports cheaper, good for global growth (China, India etc).

    Rates are still so low and things need to return to some sort of norm, plus it will be a slow rise to a still low level.

    Premier Icon wobbliscott
    Full Member

    And more importantly send a gentle reminder to those in debt to sort your situation out because rates are on the increase. A little nudge up to test the market and start to wean individuals off free money is probably a good thing.

    Premier Icon MTB-Idle
    Free Member

    I was reading the financial press a few weeks ago and someone made a comment that it was scary that the last time the fed rate (and BOE rate) changed, a vast number of currency traders were still in school! 😯

    They also made a point that with the fed raising rates at the same time as the eurozone is employing QE it could raise a perfect storm in the currency market such as happened in 92 when the UK was forced out of the ERM

Viewing 10 posts - 1 through 10 (of 10 total)

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