Regardless inflation is below target, announced Federal Reserve further interest rate hike by a quarter percentage point. Wednesday The second rate hike this year follows This last rate hike. March The new benchmark rate range will be between 1% and 1.25%, and the current rate is 0.91%. The In addition,
As also provided more details on how to reduce its $4.5 trillion balance sheet, which includes debts such as Federal Reserve, mortgage-backed securities and state-owned enterprise debt. In the long run, Treasuries is good for That because less debt is more manageable and sustainable. America also believes that inflation will be below the 2% target in 2017. The Fed will benefit from a modest increase in his checking and savings accounts.
Savers The rate increase will have a negative impact on borrowers with floating rate and revolving debt (such as credit cards and home equity loans). Alternatively The key interest rate that banks use as the basis for interest rates usually increases immediately after The transfers. Fed New loans may be more expensive for consumers. Efficient Recognize debt: Fed raises key interest rate in quarter
