Fed Rate Hike: Uncharted Territory
December 17, 2015
After seven years of zero interest rate policy the Federal Reserve Board has taken an historic, widely broadcast step in raising the target Federal Funds rate by the expected 25 basis points. The Federal Reserve has indicated that it will raise rates much more gradually than in the past. We believe this approach should help ensure that they will not undermine economic growth. At the same time, because their decision-making is data-dependent, investor uncertainty may continue, resulting in higher market volatility. Discover here the implications for fixed income and multi asset investors.