Current Events > Federal Reserve raises rates, signals 4 raises in 2018

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Fed Raises Rates and Signals Faster Pace in Coming Years https://www.wsj.com/articles/fed-raises-rates-and-signals-faster-pace-in-coming-years-1528912910

WASHINGTONThe Federal Reserve said it will raise interest rates by another quarter-percentage point and signaled it could lift them at a slightly faster pace this year to keep a strengthening economy on an even keel.

The latest increase, the second this year, will bring the benchmark federal-funds rate to a range between 1.75% and 2%. Officials penciled in a total of four rate increases for this year, up from a projection of three increases at their March meeting.

The committee expects that further gradual increases in the target range for the federal-funds rate will be consistent with sustained expansion of economic activity, strong labor market conditions, and inflation near the committees symmetric 2% objective over the medium term, the Feds rate setting committee said in its postmeeting statement.

Eight of 15 officials now expect at least four rate increases will be needed this year, up from seven in March and four in December. Most officials expect the Fed would need to raise rates at least three more times next year and at least once more in 2020, leaving rates in a range between 3.25% and 3.5% by the end of 2020, the same end point officials projected in March.
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Take out your loans now if you need one.
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Is this an interest rate on paying back money or for money sitting safely in a bank?
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Perascamin posted...

Is this an interest rate on paying back money or for money sitting safely in a bank?

Both, right?
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Perascamin posted...

Is this an interest rate on paying back money or for money sitting safely in a bank?

Both, eventually.

shockthemonkey posted...

Cant let unemployment shrink too much, then workers might be able to demand better wages

Um it's already at historically low levels leaving rates low will overheat the economy and cause a massive crash later on.
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Perascamin posted...

Is this an interest rate on paying back money or for money sitting safely in a bank?

Its the rate banks lend to each other at but influences those rates. Usually affects debt rates first and savings rates later on.
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