Fed to Raise Rates After 7 Year Itch

Seven years to the day after the Federal Reserve lowered interest rates, the central bank is widely expected to bring to an end the era of zero rates in the US

Jeremy Beckwith 14 December, 2015 | 2:36PM

On December 16 2008, the Federal Reserve established a target range for the Fed Funds rate of 0-0.25%. It said then that it expected to maintain low interest rates for an extended period of time. Not even they would have expected that target range to still be in place in 2015. 

The seven years of zero interest rates have been lucrative for investors in US financial markets, though not for savers

Seven years on to the day, on December 16 2015, following clear hints from several FOMC members, the Federal Reserve is widely expected to bring to an end the era of zero interest rates in the US.

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Jeremy Beckwith  is Director of Manager Research for Morningstar UK

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