What Yellen said on rates, oil and the US economy
The historic move by the US Federal Reserve to raise interest rates last week has implications that reverberate worldwide. Borrowers who have taken on housing loans, for example, will eventually find themselves paying more in interest, depending on the package they signed up for. Savers, meanwhile, can enjoy higher yields on their bank accounts. Today, we run highlights from the Fed's press conference on Wednesday.
Why rates are going up
Janet Yellen: Good afternoon. Earlier today, the Federal Open Market Committee (FOMC) decided to raise the target range for the federal funds rate by 0.25 percentage point, bringing it to 0.25 to 0.5 per cent.
This action marks the end of an extraordinary seven-year period during which the federal funds rate was held near zero to support the recovery of the economy from the worst financial crisis and recession since the Great Depression.
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