On June 30, 2023, the Federal Reserve announced that it was raising interest rates for the first time in nearly a decade. The move was widely expected, as the economy has been steadily improving since the Great Recession of 2008.
The Federal Reserve raised the federal funds rate by 0.25%, from 0.25% to 0.50%. This is the first time the rate has been raised since December 2015, when it was raised from 0.00% to 0.25%.
The move is seen as a sign of confidence in the economy, as the Fed believes that the economy is strong enough to handle higher interest rates. The rate increase is also seen as a way to prevent inflation from getting out of control.
The rate increase is expected to have a ripple effect on other interest rates, such as mortgage rates, credit card rates, and auto loan rates. These rates are likely to increase as well, although the exact amount is not yet known.
The rate increase is also expected to have an impact on the stock market, as higher interest rates can make stocks less attractive to investors. This could lead to a sell-off in the stock market, although the exact impact is not yet known.
Overall, the rate increase is seen as a positive sign for the economy. It is a sign that the economy is strong enough to handle higher interest rates, and that the Fed believes that inflation is not a major concern. It is also a sign that the Fed is confident in the economy’s ability to continue to grow.
