The US central bank raised its benchmark federal funds rate for the first time in more than nine years on Wednesday.
1. What did the Federal Reserve do and why?
The US central bank raised its benchmark federal funds rate for the first time in more than nine years on Wednesday (Dec 16). The rate had been next to zero since December 2008, and was increased by a quarter point to a range of 0.25-0.50 per cent. The Fed says the economy has rebounded enough since the Great Recession that the rate should begin rising, albeit slowly.
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