Federal Reserve Announces Rise of Interest Rates in Near Future

Yesterday, the Federal Reserve announced it is getting ready to raise interest rates. In a statement the Fed said “with inflation well above 2% and a strong labor market, the committee expects it will soon be appropriate to raise the target range for the federal funds rate.” Chairman Jerome Powell said it could happen as soon as March. The Federal Reserve’s preferred measure of inflation rose to 5.7% in the 12 months which ended in November and is the fastest increase in the Consumer Spending Price Index since July, 1982. Last month, the reserve signaled it would hike the rates multiple times throughout this year.