US Federal Reserve raises interest rates

Prior to Wednesday's move, the Fed had raised its key rate last December for only the second time since setting an unprecedented near-zero level at the peak of the global financial crisis in 2008.

But the Federal Reserve is hesitant to jump onboard with a rosier economic outlook just yet.

It also showed that they expect three hikes each in 2018 and in 2019. "It means that they are trying to put the breaks on it, so that we don't see the flip side of that vigorous economic activity, which would be more rapid price increases", said Kinnear.

The rate hike comes amid growing confidence that the economy is poised for more growth.

As per Chicago Tribune, the Fed credits "a strengthening job market and rising prices [that] had moved it closer to its targets for employment and inflation".

With the change, the target range for the federal funds rate will go from 0.75 percent to 1 percent.

Lucy O'Carroll, chief economist at Aberdeen Asset Management, told Sky News it would have been an "enormous surprise" if the Fed had not raised rates.

Spring forward for Daylight Saving Time today
The idea of daylight saving was the brainchild of Benjamin Franklin, aka, the "early to be, early to rise" guy, back in 1784. The time change changes the body's chemistry and increases blood pressure putting some people at risk of medical problems.

Stocks were slightly higher in cautious trading on Wall Street ahead of what investors expect will be another interest rate increase from the Federal Reserve.

In Massachusetts, the unemployment rate is even lower, at 2.8 percent - well within the range most economists think of as "full employment", defined as an economy where almost everyone who really wants a job can find one in a reasonable amount of time.

The Dow Jones industrial average gained 49 points, or 0.2 percent, to 20,885.

Junior companies in the Gold sector will more than likely start seeing some major traction in the near future, especially considering that Fed officials signalled only two more rate hikes this year, below what most economist had been predicting, which sent U.S. government bond yields lower and hurt the dollar. Little more than a month ago there was significant doubt among market analysts about whether another interest rate increase would be announced at Wednesday's meeting, following on from a rise in December. Trump has also said the Fed's low-rate policy had propped up a "very false economy", and that low rates had hurt hurt savers by giving them minimal returns on their savings. The Nasdaq edged up 11 points, or 0.2 percent, to 5,868.

The Standard & Poor's 500 index rose 4 points, or 0.2 percent, to 2,369.

Traders have priced in more than a 90 percent chance of a 25 basis points increase, according to Fed fund futures, but the market will look for clues that could point to a more hawkish tone from the Fed.


Popular
  • Will Wake Forest upset Kansas State? March Madness Predictions 3/14/17

    Will Wake Forest upset Kansas State? March Madness Predictions 3/14/17

    Star center John Collins has an incredibly efficient offensive rating of 124.2, and is capable of taking over a game. As the tournament pushes on, eight more ACC teams have the chance to claim the title as the best team in the country.
    'Just extra aggressive:' Jason Tatum's tournament run delivers title

    'Just extra aggressive:' Jason Tatum's tournament run delivers title

    Mike Brey's team is really playing well right now, dating back the last month they've put together an impressive record of 8-1. The Tar Heels have 11 RPI Top 50 wins, and they're not almost as back-loaded as Duke , with just one coming in Brooklyn .

    President Trump's revised travel ban to apply to those seeking new visas

    Whether the new order fares better will be the next question for the courts. "We worry that this is going to be much of the same". But in a major defeat, the 9th Circuit Court of Appeals ruled February 9 that Trump's initial travel ban would remain suspended.
  • NCAA Tournament: How to watch Xavier vs

    NCAA Tournament: How to watch Xavier vs

    The Mountaineers relied on one senior (Jaysean Paige) and a lot of sophomores and juniors. In a tournament setting with just a day to get ready for? Good luck my friends.
    Things to Expect on The Bachelor Finale 2017

    Things to Expect on The Bachelor Finale 2017

    MORE: Did Lauren Bushnell Get Plastic Surgery? Even before he joined The Bachelor , he was reportedly the one who chased girls. Will Nick choose Raven or Vanessa? Next on The Bachelor Season 21 finale, Nick discusses his relationship with Vanessa .
    What the End of 'Logan' Means for Wolverine's Movie Future

    What the End of 'Logan' Means for Wolverine's Movie Future

    This is another egg taken from the original "X-Men", when Logan first meets his eventual love Jean Grey in a similar situation. If you are interested (and why wouldn't you be), here is my updated list of the greatest comic book movies of all time .
  • Clear and Present Danger: North Korea Targets US Base

    Clear and Present Danger: North Korea Targets US Base

    The final nail in the coffin came in 2009, when the North performed its first successful nuclear weapons test. This would exacerbate China's encirclement sense of being encircled by United States allies and weaponry.
    Arsenal boss Wenger happy Welbeck on scoresheet

    Arsenal boss Wenger happy Welbeck on scoresheet

    The fact Arsenal have yet to decide on the future of their two best players speaks volumes about the state of the club as a whole. My only regret is that we lost the game. "For us it is not a big advantage and Alexis had a big impact on the game".
    Jadeja shines as Australia post 276 in Bangalore Test

    Jadeja shines as Australia post 276 in Bangalore Test

    Australia have their noses in front in this Test as well, but India is crawling back it seems. And Mitchell Marsh's Alfred Hitchcock bowling cameo was hardly worth it.
  • MTSU, Vanderbilt heading to NCAA Tournament

    MTSU, Vanderbilt heading to NCAA Tournament

    In terms of this season, the Tar Heels are averaging 84.9 points per game , and they are about to go up against a No. 16 seed . WhatIfSports.com gives the Gators a 65.9 percent chance of advancing past East Tennessee State into the round of 32.
    QB Glennon inks deal with Bears

    QB Glennon inks deal with Bears

    That's a lot of money no matter how you slice it, but it also means this three-year deal is essentially a one-year contract. The Bears' revolving door of playcallers also contributed to Cutler's failure to develop into a franchise quarterback.
    Google Hangouts Meet Android app now available on Play Store [Download APK]

    Google Hangouts Meet Android app now available on Play Store [Download APK]

    It's also got a "green room", where you can check yourself, make sure you look presentable and then join the video call meeting. Next up is Hangouts Meet and according to Google, the idea was to reduce the time it takes to get from one meeting to another.

CONNECT