Is the U.S economy getting better?
This appears to be the general sentiment as the Federal Reserve announced today that it would be raising interest rates by 0.25 percent (one-quarter) for the first time this year and only the second time in the last decade.
Since 2008, the U.S. (much like the rest of the world) has been on pins and needles from an economic standpoint. While some argue that the country has endured certain measures of stabilization, the fact that job reports are still low and unemployment spikes have been running rampant all year makes the general public a little skeptical.
Presently, reports are not all they’re cracked up to be. For example, federal chairwoman Janet Yellen says that the economic outlook is still “highly uncertain,” but that gradual rises from anywhere between 0.50 percent and 0.75 percent are likely to occur in the coming years, reminding us that while there are no permanent answers, the country is finally healing its old wounds.
An official Fed statement proclaims:
“The Committee expects that economic conditions will evolve in a manner that will warrant gradual increases in the federal funds rate.”
If American interest rates increase, chances are neighboring regions will experience similar hikes relatively soon. That’s the beauty, as well as the downfall of the global economic system. To an extent, we’re all connected through factors of growth and business. When one superpower goes down, the rest can experience similar nosedives. It occurred in 1929 when the stock market crashed – beginning in the U.S. and eventually spreading to Europe, and also in 2008. However, when things are good, positive repercussions are likely to be felt from one end to another.
Many Americans are wondering if Trump’s economic plan has something to do with the hikes. Upon his winning the presidential election last November, the stock market soared gradually through the roof, and the President-elect is also being “blamed” by some for bitcoin’s present rise to $777, as trading soared following the election results on November 8.