Fed raises rates, sees three rate hikes in 2018

[DonViejo]

Source: Yahoo Finance



Justine Underhill
Reporter
Yahoo Finance December 13, 2017

WASHINGTON — For the third time this year the Federal Reserve raised rates, a widely-expected move following signals from Fed officials.

After its two-day policy meeting, the Federal Open Market Committee voted to lift its benchmark federal funds rate between 1.25% and 1.50% and to continue the process of balance sheet normalization, which began in October. Two members of the committee, Neel Kashkari and Charles Evans, voted against the decision, preferring not to raise rates.

Economic outlook

The Fed’s cautious, yet generally positive, economic statement follows a slew of mixed data, including better-than-expected third quarter GDP and soft inflation numbers.

Unemployment has held solidly below 5% for over a year, a level many economists consider to be near full employment. The unemployment rate sank to 4.1% in November, its lowest level in over a decade.

Read more: https://finance.yahoo.com/news/federal-reserve-december-2017-fomc-decision-143436424.html

[Egnever]

1. This worries me

It will have a pretty big effect on the housing and auto market.

[FakeNoose]

2. The new tax scam/reform bill will do all the damage to our economy

Just sayin'

[Yupster]

4. Few people like rate hikes

but when the economy goes down everyone will want rates cut to spur spending.

You can't do that if you don't raise the rates back up during the good times.

Honestly, the rates should have been going up faster for the last 3-4 years.

[Xolodno]

3. Hmmmm...they may be pulling a small Volkner.

Pulling the plug on the economy it bit so it contracts. If that is their intention, it shits on the tax scam. What good is less taxes if your unemployed? Congress would be forced to increase "G" in the C + I + G + (X – M) equation, but to pay for that, the tax cuts would have to go....and perhaps even raised.