Fed raises interest rates for first time in nine years
by Camino Real Mortgage Bankers

Posted on Dec 29, 2015 at 10:00 AM

With a unanimous vote, the Federal Open Market Committee announced in its December meeting that it is officially raising the federal funds rate.

In a statement released Wednesday by the Federal Reserve, the FOMC said that it will gradually raise the federal funds rate to a range of 0.25% to 0.50%.

Given the economic outlook, and recognizing the time it takes for policy actions to affect future economic outcomes, the committee decided to raise the target range for the federal funds rate to 0.25% to 0.50%. The stance of monetary policy remains accommodative after this increase, thereby supporting further improvement in labor market conditions and a return to 2% inflation,” the FOMC said in a statement.

According to the economic projections of Federal Reserve Board members and Federal Reserve Bank presidents under their individual assessments of projected appropriate monetary policy, the median federal funds rate projection with grow from 0.4% in 2015 to 3.4% in 2018.


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