Jerome Powell and the gang got together at Fed HQ in Washington D.C. this week…and, not surprisingly, they finally got around to raising interest rates.
It’s been four years since they raised the Fed Funds rate (the interest rate that banks charge each other for overnight lending).
The Fed was partying like it was 2018 again when they said, “the Committee decided to raise the target range for the federal funds rate to 1/4 to 1/2 percent and anticipates that ongoing increases in the target range will be appropriate. In addition, the Committee expects to begin reducing its holdings of Treasury securities and agency debt and agency mortgage-backed securities at a coming meeting.”
Fed speak is truly its own language. But since I have a degree in Fed speak, I will translate for you.
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