Newsbytes
  • India
  • Business
  • World
  • Politics
  • Sports
  • Technology
  • Entertainment
  • Auto
  • Lifestyle
  • Inspirational
  • Career
  • Bengaluru
  • Delhi
  • Mumbai
  • Videos
  • Visual Stories
  • Reviews
  • Phone Reviews
  • Fitness Bands Reviews
  • Speakers Reviews
  • Find Cricket Statistics
Hindi
More
In the news
Ukraine
World Economic Forum (WEF)
Davos
COVID-19
China
Quadrilateral Security Dialogue
Omicron variant
Newsbytes
Hindi
Newsbytes
User Placeholder

Hi,

Logout


India
Business
World
Politics
Sports
Technology
Entertainment
Auto
Lifestyle
Inspirational
Career
Bengaluru
Delhi
Mumbai
Videos
Visual Stories
Reviews
Phone Reviews
Fitness Bands Reviews
Speakers Reviews
Find Cricket Statistics

More Links
  • Videos

Download Android App

Follow us on
  • Facebook
  • Twitter
  • Linkedin
  • Youtube
 
Home / News / World News / US Fed hints at interest rate hike later this year
World

US Fed hints at interest rate hike later this year

US Fed hints at interest rate hike later this year
Written by Vijaya
Edited by Gaurav Jeyaraman
Sep 22, 2016, 01:02 pm 3 min read
US Fed hints at interest rate hike later this year
Credits:

The US Federal Reserve has left interest rates unchanged at the moment, saying that US growth rates were currently high. The Chair of the Federal reserve Janet Yellen added that though there was a high growth rate, interest rate hikes could be needed to keep the economy from fuelling inflation. She stated that interest rate hikes could come by the end of 2016.

Information
Fed Funds Rate/Interest Rate

The US Federal funds rate is "the interest rate" at which depository institutions (banks and credit unions) actively trade balances held at the Federal Reserve (called federal funds) with each other, usually overnight, on an uncollateralized basis.

Interest rate
2007 Inflation and Zero interest rate policy

The 2007 global financial market turmoil led to a severe economic downturn. The US Federal Reserve responded to the recession by reducing the federal funds rate essentially to its lower bound of zero in Dec 2008, to stabilize the economy. In the ensuing seven years, the Federal reserve continued to maintain interest rates at near-zero levels, to increase employment rate and stabilize inflation.

Effects
Implications of low interest levels

The primary benefit of lowering interest rates is their stimulative effect on economic activity. Low interest rates increase public borrowing resulting in increased circulation of money. It also helps households and businesses finance new spending and help support the prices of many other assets, such as stocks and houses. Thus, low interest rates helps an economy's growth and improving employment.

Fed and India
How does increase in Fed rate affect India?

An increase in Fed rate will raise the borrowing cost for carry trade (borrow from US and invest in India). Further, this may make US bonds and equities more attractive for investment for the investors looking for stable returns. This eventually is likely to result in funds flow out of both debt and equity markets of India, and put the rupee under pressure .

Quote
India prepared for US rate hike

Economic Affairs Secretary Shaktikanta Das said that the government and RBI are prepared to deal with any eventuality arising out of the US Fed rate hike. The same sentiment was reflected by RBI governor Raghuram Rajan previously.

26 Sep 2015
Fed Chief expects interest rate hike this year

Speaking at the University of Massachusetts, the US Federal Reserve Chief, Janet Yellen said that she expected a hike in interest rates in 2015. She added that an increase in interest rate is likely as the inflation moves back to the objective of 2%. Yellen's remarks came a week after Fed's policymakers voted to keep its short term interest rates at near-zero.

Information
Dollar gains after Yellen's comments on rate hike

The US dollar hit its highest in over five weeks against a basket of major currencies, a day after Federal Reserve Chair Janet Yellen said she expects rate hike in 2015, and after U.S. growth data appeared to support such a move.

17 Dec 2015
Fed hikes interest rate after decade long lull

The Federal Reserve increased interest rates by 0.25% after a near decade long lull, in a move that signals that the US economy may have healed after the 2008 recession. Recent trends indicated that the US job market was growing, prompting speculation that a rate hike was imminent. The Fed emphasized that the rate hike was a tentative beginning to a "gradual" tightening cycle.

Share this timeline
Facebook
Whatsapp
Twitter
Linkedin
Vijaya
Vijaya
Mail
Eternally curious (at times bordering on FOMO), firm believer of science and equality. Biotech graduate with a totally irrelevant marketing degree.
Gaurav Jeyaraman
Gaurav Jeyaraman
Mail
News and music is all its been and is all it ever will be. A cold beer doesn't hurt sometimes either.
Latest
Latest
Mercedes-AMG to unveil V8-powered AMG E 63 Final Edition soon
Mercedes-AMG to unveil V8-powered AMG E 63 Final Edition soon Auto
Drawing family pension from different sources possible: Government clarifies
Drawing family pension from different sources possible: Government clarifies India
COVID-19: India logs 2,828 fresh cases, 14 more fatalities
COVID-19: India logs 2,828 fresh cases, 14 more fatalities India
Coal India to import fuel as power shortage looms large
Coal India to import fuel as power shortage looms large India
2022 Kia EV6 review: Should you buy it?
2022 Kia EV6 review: Should you buy it? Auto
Next News Article
Next News Article

Love World news?

Subscribe to stay updated.

World Thumbnail
India News Business News World News Politics News Sports News Technology News Entertainment News Auto News Lifestyle News Inspirational News
Career News Bengaluru News Delhi News Mumbai News Mukesh Ambani Indian Premier League (IPL) Karnataka Samsung Xiaomi West Bengal
Bihar Virat Kohli Rohit Sharma Haryana Narendra Modi Arvind Kejriwal Tamil Nadu Gujarat Yogi Adityanath YouTube
Instagram Hollywood News Uttar Pradesh Kerala Netflix Bollywood News Mamata Banerjee Maruti Suzuki Rahul Gandhi Elon Musk
Shah Rukh Khan Chelsea FC OPPO Akhilesh Yadav Indian Cricket Team Apple Manchester United Salman Khan Cryptocurrency OnePlus
Amitabh Bachchan ICC Women's World Cup Vivo India vs Sri Lanka
About Us Privacy Policy Terms & Conditions Contact Us Ethical Conduct Grievance Redressal News News Archive Topics Archive IPL 2022 Schedule IPL 2022 Points Table Find Cricket Statistics
Follow us on
Facebook Twitter Linkedin Youtube
All rights reserved © NewsBytes 2022