U.S. FED HIKES INTEREST RATE FOR FIRST TIME IN NEARLY A DECADE
Dec 16, 2015
By Bob Komsic
The U.S. Federal Reserve Board is hiking rates for the first time in seven years, signalling faith the economy had regained enough strength after the financial crisis.
The American central bank’s raising the range of its benchmark rate by a quarter of a percentage point to between 0.25% and 0.50%, meaning consumers and businesses could now face modestly higher rates on some loans.
The Fed has also made it clear that the rate hike was the start of a ”gradual” tightening cycle as it monitors inflation.
That represents a compromise between those who’ve been ready to raise rates for months and those who feel the U.S. economy is still at risk .