Federal Reserve announces first rise in US interest rates since 2006

America's central bank signals Great DepressionThe Federal Reserve said on Wednesday interest rates increases made since the financial markets, government intervention is an extraordinary period ends, the worst financial crisis in the middle began a monetary policy for seven years They began at an altitude of over recession.



For seven years of its benchmark rate near zero federal funds to hold rates a quarter of one percentage point after the Fedincreased. This step is a statement of the Great Depression.In worst economic crisis since the start in the middle that symbolizes the end of a monetary policy, the Fed's economic activity expanded at a moderate speed 'was. Household spending and business fixed investment increased at a rapid rate in recent months, and real-estate sector has been further strengthened. Future financial results' to influence policy requires time to identify the 'economic scenario given, and' Fed a quarter point, almost a decade in the first growth rate of federal funds to your goal today decided to extend coverage Central Banks' monetary policy with the gradual adjustment 'for more increases to come the signs and indicators for a press conference, President strengthen.At to continue at a moderate pace of economic activity and the labor market continues to expand that 'where the Fed Janet Yellen said, 'The federal funds rate since the worst financial crisis and recession in the economy recovery support to close to zero was placed when this operation seven years of an extraordinary period at the end Traces of the Great Depression. Every now been added jobs are likely to be increasingly 'normalization, however, is a long way' and 'inflation under our long run for the US to continue objective.The' He said that the economy said that 'from October 2010 month, expressed concern about some movement, in November, the economy added 211.000 jobs and 237,000 jobs per month in the last 12 months.However added an average. Inflation control is being - from the economy's slow to increase rates need to reduce an adjacent. And signs of weakness in the labor market of people with historically high numbers, there is still not even look work.Ahead meeting, Richard Trumka, American largest trade union federation, the AFL CIO president, to urge the Fed 'from Avoid doing a lot of things because people do not feel the constant wage economic recovery by raising the interest rates.Too a mistake for. In the coming months, the Fed increased productivity, real wages are expected to focus on the objective of the policy should be. Workers make all of us deserve to live a better life by giving money to families bad news ', they announced said.After, Senator Bernie Sanders, a Democratic presidential candidate, denounced the move as' .at a time 'To work with the actual unemployment is almost 10, and youth unemployment is off the chart, we and the American people to pay good wages to increase that to create employment opportunities for the millions it must do everything possible. The seven years ago, the world's stock markets is a clear indication of the passage of the onanticipation had grown, Wall Street banks to save was as fed, middle class disappears for the reconstruction of urgency is the same spirit of should work with the United States in the wake of the recent recession rocked. Zero interest rate policy is actually seven years ago, Yellen predecessor, Ben Bernanke, on December 16, 2008 was introduced. At that time, the global stock markets, a global recession.Bernanke billions spent to buy bonds and TreasuryCo, a comprehensive program for the purchase of bonds with step-by-zero beginning supported the mortgage-backed securities of a financial bubble bursting After the crisis was in the mortgage and investment to keep low interest rates, quantitative easing (QI) is known as a policy to encourage standing face. Qi, the last October.Gus Faucher, senior macro-economist for PNC expired policy was successful. 'You compared to other industrialized economies, the United States, the US recovery has been better', he said. 'You are the way to go Qi decided that now that Japan and Europe can see evidence of this matter. ' The story's title is basically the rate of 2008, zero to low was the first time since the increase, though it is 2008 since the first rate increase, it was 2006 the first time since the overall upward trend.