December 22, 2016
US Economy Recovery
Fed rate increase, the second time after 2009, Great Recession. This is a good news for US, it signals an improvement in US economy and labour market.
An increase in rate means the US central bank raised its benchmark federal funds rate; so the rate banks charge each other for overnight loans will increase a quarter percentage point from December 14, 2016 on ward. This resulting the borrowing cost will be up.
What is the Impact to US Market?
Picture worth a thousand words. If we use one of the US stock market key index, Dow Jones Industrial Average Composite, ^DJI we will see look like there is no impact. Of course only less than a week old on the rate hike news.
December 20, 2016 Dow Jones Industrial Average Composite
What is the Impact to the Resk of the World?
If you really interested to know, you can check out Bloomberg website to watch the video for more. https://www.bloomberg.com/news/videos/2016-12-15/how-the-fed-s-rate-hike-impacts-the-rest-of-the-world.
Moses Free Stock Analysis
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