The Markets Reflect Asset Re-Pricing Worth Trillions

The Markets Reflect Asset Re-Pricing Worth Trillions
AP Photo/Evan Vucci, File

On December 14, the Federal Reserve raised the short-term interest rate it controls for only the second time in a decade.

But the move was expected, precisely because the Fed has grown accustomed to telegraphing its every move well in advance, so as not to catch the market or investors unawares. Indeed, the narrative surrounding the Fed’s intentions has been remarkably consistent for the last several years. So long as employment continues to grow and wages rise, America’s central bank will continue on its current path of slowly raising interest rates.

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