The Chairman of the United States Federal Reserve, Janet Yellen, announced for the first time that the Federal Reserve is definitely on a schedule to raise rates at it September 2015 meeting. Federal Reserve Confirm That Rate Hike Is Set For September
The news of the rate hike had been expected for some time with the only question being will the rate hike go into effect at the end of this year or at the beginning of next year. members of the Federal Reserve have noted that while the U.S. Economy is still sputtering, Christian Broda says that it is at least sputtering in the right direction and key indicators such as housing construction increases as well as lower unemployment have set the stage for the Federal reserve to initiate the rate hike. The actual Federal Reserve policy designers anticipate that the federal rate for funds to increase from 0.125% to 0.625% by Christmas. This is consistent with projections based on the performance of the U.S. economy earlier in the year. Economist familiar with how the Federal Reserve operates believe that the jump from 0.125% to 0.625% will be done with two rate hikes. The first hike they see will come in the announced September rate hike.
The rate increase are seen as inevitable ever since the Federal reserve cut the rate on the lending of money to almost 0% after the 2008 economic meltdown, which many people are just beginning to realize was worse than originally thought.