WASHINGTON, Dec. 16 (Gephardt Daily/UPI) — The Federal Reserve on Wednesday increased the benchmark interest rates by one quarter of a percentage point.
It is the first rate hike since 2006. Experts anticipate more small increases will follow.
“I feel confident about the fundamentals driving the U.S. economy, the health of U.S. households, and domestic spending,” said Federal Reserve chair Janet Yellen, during a news conference.
“There are pressures on some sectors of the economy, particularly manufacturing, and the energy sector…but the underlying health of the U.S. economy I consider to be quite sound.”
A November report suggested the U.S. economy could successfully weather a modest interest rate adjustment due to a steady and small unemployment rate. The report said emergency economic conditions from the 2008-09 recession no longer exist and the economy has largely rebounded.
Federal Reserve officials have said any moves will be gradual, based on the response of financial markets and the economy. A forecast in September showed officials expect to increase their benchmark interest rate up to a median of 1.4 percent by the end of 2016.
