The dollar went up 0.2 percent to 122.43 yen, after a 0.5 percent increase on Thursday (December 17). Prices rose by 1.3 per cent, apart from food and volatile energy.
With economic growth expected to reach 2.4 percent in 2016 and unemployment to drop to 4.7 percent, economic projections from the Fed remained largely similar to the last round of predictions back in September. Market observers said that banks might wait until early 2017 to implement their first rate hikes, though.
The Fed’s decision, which was anticipated by plenty of sectors, marked the end of roughly eight years of record-low interest rates, over reassurances that the fundamentals of the U.S. economy are now in better shape and more stable footing than ever. In particular, Federal Reserve chief Janet Yellen said that a strong labor market provided a sound foundation for the interest hike – and eventual accelerated growth.
Monetary policy will remain “accommodative after this increase, thereby supporting further improvement in labor market conditions and a return to 2 percent inflation,” according to the Fed, as quoted by Sacred Heart.
On the heels of the Federal Reserve’s decision to hike interest rates on Wednesday (December 16), the average rate of 30-year mortgages increased to 3.97 percent, along with a rise on United States stock futures.