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Calm Acceptance as Fed Enacts Its First Interest Increase in Seven Years | Tony Seruga
Dec
17

Calm Acceptance as Fed Enacts Its First Interest Increase in Seven Years

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The Fed’s chief, Janet Yellen, taking questions Wednesday after a rate increase was announced. CreditJonathan Ernst/Reuters

WASHINGTON — The Federal Reserve’s much-anticipated “liftoff,” its first interest rate increase since the financial crisis, unfolded as quietly and smoothly as Fed officials could possibly have wished.

For the Fed, however, the hard work now lies ahead.

The Fed persuaded participants in the financial markets that a quarter-point increase in its benchmark interest rate didn’t matter much. But the big questions about the American economy haven’t changed.

It’s not clear whether steady-but-lackluster growth is now as good as it gets, or whether the economy is just starting to heat up. It’s not clear why inflation is so sluggish, or how many people without jobs would like to return to work…

Calm Acceptance as Fed Enacts Its First Interest Increase in Seven Years

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