Economy Our insights on the global economy, business environment and the world’s major cities inform business strategy and pinpoint opportunities and risks.

Federal Reserve Announces First Hike In Short-Term Interest Rates Since 2006

12/16/2015
Sarah Boumphrey Profile Picture
Sarah Boumphrey Bio
Share:

As expected, the Fed raised interest rates for the first time since 2006 today.  The US economy has seen relatively robust growth this year and unemployment is at half its Q1 2010 peak. On the other hand inflation remains well below target, and global risks are on the downside. The move is likely to be the first in a relatively gradual process of tightening with economists expecting up to 4 further increases in 2016. Although the arguments in favour of the rise are seemingly strong, I would counter that the increase could well have come too soon. With emerging markets continuing to struggle, and China in particular still slowing, a rate rise now could have a negative impact on the far-from-robust global economy.

Interested in more insights? Subscribe to our content

Explore More

Shop Our Reports

Voice of the Consumer: Lifestyles Survey 2023: Key Insights

Voice of the Consumer: Lifestyles Survey 2022: Key Insights report offers valuable insights into global consumer attitudes and current thinking, and their…

View Report

Global Inflation Tracker: Q2 2023

This report examines inflation levels and drivers globally and in key countries. Global inflation is moderating, although volatility in the energy markets and…

View Report

Asia Pacific Consumer Trends: How Self-love and Individuality are Taking Centre-stage

The Asian consumer is changing. Traditional values that served the collective in terms of both society and the family are on the wane, with COVID-19 lockdowns…

View Report
Passport Our premier global market research database with detailed data and analysis on industries, companies, economies and consumers. Track existing and future opportunities to support critical decision-making across all functions within your organisation Learn More