The NewCo Daily: Today’s Top Stories
Nearly a decade of near-zero interest rates have finally kicked the U.S. economy back into gear. Unemployment is down, inflation is creeping up, and the stock market has soared, so it’s time for the Federal Reserve to start raising interest rates again. That, at least, is the consensus of Fed officials, who announced a widely-expected quarter-percent rate hike today (Bloomberg).
In the short term, that will mean higher rates for credit-card borrowers and home and auto loans. (But don’t hold your breath waiting for better return on your savings.) In the long run, it may mean conflict between the independent Fed and the new administration: President Trump has made sky-high promises for economic growth and job creation that are probably impossible to make good on anyway, but they’ll be even harder to fulfill if the Fed is boosting rates.Read More