Fed Raises Interest Rates, and Raises Expectations for 2017

Luke Tilley |
Wilmington Wire

December 15, 2016— The Federal Open Market Committee (FOMC) of the Federal Reserve unanimously voted to raise its target for the federal funds rate on December 14 from a range of 0.25%–0.5% to a range of 0.5%–0.75%. The decision was not a surprise to markets, as the market for fed funds futures had priced in a 100% chance of a hike, up from just a 50% chance in September.