US Fed runs out of excuses, raises rate

15 December 2016

 

The US Fed has raised its official rate for a second time, one year after its last rise in December 2015. The Fed’s interest rate setting committee, known as the Federal Open Markets Committee (FOMC) raised the Federal Funds target rate from its 0.25% to 0.50% range to a range of 0.50% to 0.75%. US bond markets reacted severely. US 2 year bond yields finished 11bps higher at 1.27% and...

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