As expected, the Federal Reserve Wednesday said it will raise short-term interest rates, a move that signals a vote of confidence in the American economy despite global economic struggles. The New York Times reports the widely anticipated decision ends a seven-year period in which the Fed held short-term rates near zero. The decision to raise rates “recognizes the considerable progress that has been made toward restoring jobs, raising incomes and easing the economic hardships that have been endured by millions of ordinary Americans,” according to Fed chairwoman, Janet Yellen. As it raises its benchmark interest rate by one-quarter of a percentage point, to a range of 0.25 to 0.5 percent, the Fed emphasized subsequent increases would come slowly. Interest rates on mortgages and other kinds of loans, and on savings accounts and other kinds of investments, are likely to remain low by historical standards for years to come.
Welcome
