After 7 years of near zero interest rate, the Fed raises interest rate by 0.25% from 0.25% to 0.5%.
Reasons given for raising interest rate today are:
To understand the action of the Fed better, watch this very instructive video on the yield curve.
What is a yield curve?
https://youtu.be/mXiwY_e4nC0?list=PLD3EB06EC4A19BFB8
For those who wish to understand the Fed better, watch this video.
What is the FED?
https://youtu.be/2QGqXeDOkIU?list=PLECECA66C0CE68B1E
US economy has improved. Consumer spending, autocar buying and housing sector activities are up. Wages have not risen much so far.
Read also this very good post:
http://unclezmalaysia.blogspot.my/2015/12/300pm-ny-time-wednesday-16-december-2015.html#comment-form
Reasons given for raising interest rate today are:
- GDP growing at 2% to 2.5% sustainably for some time.
- Employment has dropped from 10% to 5%.
- Inflation is still below the 2% target at 1.3%, but the Fed wants to be ahead of the curve.
To understand the action of the Fed better, watch this very instructive video on the yield curve.
What is a yield curve?
https://youtu.be/mXiwY_e4nC0?list=PLD3EB06EC4A19BFB8
For those who wish to understand the Fed better, watch this video.
What is the FED?
https://youtu.be/2QGqXeDOkIU?list=PLECECA66C0CE68B1E
US economy has improved. Consumer spending, autocar buying and housing sector activities are up. Wages have not risen much so far.
Read also this very good post:
http://unclezmalaysia.blogspot.my/2015/12/300pm-ny-time-wednesday-16-december-2015.html#comment-form
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