Everything you need to know about the Federal Reserve's decision to raise interest rates

Jewish World Review ^ | December 17, 2015 | Ylan Q. Mui

[Idaho_Cowboy]

WASHINGTON - The Federal Reserve announced Wednesday it was raising rates for the first time in nearly 10 years: raise interest rates. The decision sounds wonky, but it is momentous for the nation's economy. Hiking rates mark the end of a historic effort to lift growth and create jobs -- an effort that has had decidedly mixed results. Unemployment is down, but workers aren't getting meaningful raises, and there's still a general sense that the economy isn't as strong as it could be.

When the Fed raises interest rates, the cost of all sorts of other loans, from mortgages to credit cards, will likely also go up. Lending is the lifeblood of the economy, so any change could affect not just the price of borrowing but the stock market, the jobs market and the value of the dollar. Policymakers from Mexico to Zambia are bracing for wild swings in financial markets. It will also mark a new chapter in the America's recovery, a sign that nation's economic stewards believe it is relatively safe from the risk of a sudden downturn. Not everyone agrees, however.

Understanding what the Fed is, and why the Fed does what it does, can be pretty complex. Here's what you need to know.

Read more at http://www.jewishworldreview.com/1215/fed_rate_hike.php3#b6Y2kUMh7scdiwGL.99

[Idaho_Cowboy]

A good look at the implications of the Fed's descision from an economic perspective.

[circlecity]

"Unemployment is down,"

Only if you fail to include 95 million people without jobs as unemployed.

[rstrahan]

See-the economy is growing so we can raise rates...except incomes have declined every year, actual unemployment is more like 30%, actual inflation is well over the 1-2% implied by the Fed, big companies are outsourcing jobs to reduce overhead...

Need I continue?

[circlecity]

Plus they are obviously juggling the numbers to come with the pathetic growth figures they actually report.

[Texas Fossil]

BTTT

[Aut Pax Aut Bellum]

I am glad that their efforts have helped the economy start to grow again. Wow, just 5% unemployment! I need to run and tell the new beggars at our local rural shopping center. Perhaps I’ll knock on the doors of the campers that people are living in there too and tell them the good news! Next I’ll pop over to Lowes and tell all the unhappy part time workers (they only hire part timers here anymore) the good news. Woo Hoo, good time are here again! /sarcasm

[so_real]

There's going to be an election in a year, which will likely go Republican. If you are a liberal one-world order type democrat, you are thinking of setting the stage to tighten the money supply, starting now. Audit the d**n Fed, already. The secrets exposed will have the Founders spinning in their graves.

[Idaho_Cowboy]

Interesting. This could set the stage for the Economy to head back down hill when the new president elect steps in and then the media can blame in on the lack of confidence in the new radical (assuming it aint’ Jeb) president.

[so_real]

The IRS and the Fed are tools of government. In the wrong hands, they are weapons of government. And ... let me tell ya ... they are in the wrong hands.