Analysis: What today's expected Federal Reserve interest rate hike means
Market reaction to Trump's election signals a move away from a dependence on monetary policy
Everyone is expecting the US Federal Reserve to raise interest rates today – a move the bank had been signalling for months before the US went to the polls, and one that was set to be one of the seminal market-moving events of the year, had it not been for Trump’s election.
Changes to the rate of interest that banks charge to lend each other Federal Reserve funds overnight are rare enough. If the move is made today,it will only be the second ‘hike’ by the bank in ten years– the first being only a year ago.
