In a move that had been widely expected by markets, the Federal Reserve has increased US interest rates by a further 25 basis points (bps), marking its third rise since December 2015, as the US economy continues to improve.
Following its two day March meeting, the Federal Open Market committee (FOMC) has increased the Federal Funds Rate in the US to 0.75%-1% up from 0.5%-0.75%. In its forward guidance, the Fed confirmed it expects to stick to its forecast of three rate increases in 2017. All but one committee member - Neel Kashkari - voted to increase rates again after increasing them to 0.5%-0.75% from 0.25%-0.5% last December. Interest rates moved upwards for the first time since 2006 in December 2015 from lows of 0%-0.25%. Following the news, the US dollar index, which gauges the value against a baske...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes
