The US Fed has raised interest rates. Let’s not get overwhelmed: the range is now 1 to 1.25%.
But, let’s ask why. The US is not facing an apparent inflation threat. QE has not delivered price increases as all the hawks said it would. Nor is the US economy over-heating on any measure bar climate abuse.
So why increase rates now when there is no apparent need to do so?
The interesting part of their announcement was their laying out how, why and when they are going to reverse QE.
You know, that reversal of QE which SnippaSpud has been insisting will never, never, happen?