Economy Strong Enough to Raise Interest Rates
Posted by Florida Realty Marketplace on
The Federal Open Market Committee voted Wednesday to raise interest rates for the second time this year to 1-1.25 percent, a move that was widely expected amongst economists and industry professionals and described as “prudent” by FOMC Board of Governors Chair Janet Yellen.
Back in March, they voted to increase the rate a modest quarter of a point to maintain the Fed’s goal of maximum employment and market stability.
The FOMC is of the opinion that waiting too long to scale back accommodations could potentially cause a rapid increase in rates, which could disrupt the market and send the economy into another recession. June’s rate increase reflects this continued belief, and follows Janet Yellen’s comments from March that, “we continue to…
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