Thursday, 24 December 2015

Is FED's Decision to Raise Short-term Interest Rates is Disastrous?

The Federal Reserve (Fed) has increased short-term interest rates. This is the first time since the 2007 Financial Crisis.

Making this decision was risky but may be rewarding in the sense that investors will seek to put their loot in a more stable economy like the US.

The Federal Open Market Committee failed to take cognizance of the fact that markets can 'underreact.' Since Economics is an inexact science, the ramifications of this decision remain unpredictable. 
                                                                         Source: BBC News

Bernie Sanders says this decision spells doom for working families. However, let's wait and see how global economies will react.

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