WASHINGTON, Dec. 16 (UPI) — The increase in benchmark interest rates by the Federal Reserve, expected Wednesday, is anticipated by many to be the first of several rate hikes.
An official statement by the Federal Reserve will be released at 2 p.m. EDT, after which Chair Janet Yellen will hold a press conference.
Yellen is expected to announce a small rate hike, the first since 2006, with assurances of caution regarding future increases.
A November report suggested the U.S. economy could successfully weather a modest interest rate adjustment due to a steady and small unemployment rate. The report said emergency economic conditions from the 2008-09 recession no longer exist and the economy has largely rebounded.
Federal Reserve officials have said any moves will be gradual, based on the response of financial markets and the economy. A forecast in September showed officials expect to increase their benchmark interest rate up to a median of 1.4 percent by the end of 2016, higher than the current zero-to-0.25 percent. It suggests the Fed will regularly increase the interest rate by one quarter-percentage point, possibly every second time it convenes during the new year.
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