1st Economic Turning Point since 2009 for the U.S. Economy Just Announced
After the long awaited decision of their 2 day meetings in Washington; the Fed policymakers announced and launched the not so suprising news of increased short term interest rates. The Feds feel based on surveys and indicators that the economy has improved enough to be able to handle higher interests rates and wants things to be back to normal according to their statement released on December 16th, 2015.
Although the federal fund rate increase was quite small (approximately 0.25-0.5 points) the federal fund rate is likely to remain the same with only moderate increases in the future. The move does reflect confidence in the U.S. economy in all areas of the economy and is also probably the most significant economic indicator and the most significant turning point in the U.S. economy since June of 2009 when the federal fund rate dropped and remained near zero percent since that time. Americans will also see increased rates over the year in areas such as: car loans, small business loans, credit cards, corporate bonds and even higher rates for long term mortgages.