The Fed raised interest rates by 0,25%. The move, which confirms market expectations, marks the first rise in the cost of money in about ten years, since 2006, and puts an end to the monetary policy of near-zero interest rates that began after the 2008 crisis.
The cost of money in the USA thus rises to 0,25%-0,5% from the range of 0-0,25%. The central bank has announced that the rate hikes will be gradual, because the current conditions "ensure only gradual increases".
The decision to raise interest rates was unanimously taken by the FOMC (10 votes). For Yellen, who spoke at the press conference following the rate announcement, the move "reflects confidence that the economy will continue to strengthen." Since the conditions set for the start of the tightening have been met, Yellen said, "waiting too long to raise rates could have created problems." However, monetary policy will remain substantially accommodating and will depend, Yellen reiterated, on how the economic situation evolves.
The Federal Reserve also confirmed growth estimates: in 2015, GDP is expected to increase by 2,1% and unemployment will settle at 5%. Yellen spoke of "significant improvements" in labor market conditions. On the inflation front, the Fed expects +0,4% in 2015. Consumer prices will hit the 2% target in 2018.
The governor of the central bank then reassured that quality of US growth: "I'm not worried about a new recession - she said - I'm confident in the fundamentals of the US economy".
