Posted by: Floyd J Fernandez, J.D. | December 27, 2016

The Fed Has Raised Interest Rates

The Fed Has Raised Interest Rates, But Not Much.

The Federal Reserve Bank has raised hopes that the number of interest-bearing creditors, which has the ownership interest thiat is most powerful in the financial culture, will see that fair rates of return on investments and equities will begin to increase.  Ironically, that will result in a greater likelihood of job creation.

The Fed, and its chairwoman, Janet Yellen, have allowed virtually zero base lending interest rates throughout the last 7 of 8 years, with historically low interest rates for the last decade of what has been economically stagnant conditions.  However, with new signs of greater economic growth, and the likelihood of new tax and regulatory reform under the new administration of incoming President Trump, the necessity of slow, gradual increases in interest rates now become apparent, in order for re-heated price inflation, that could choke off economic expansion, to be restrained.

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