In late 2008, with the unemployment rate soaring and a crippled financial system propped up by government bailouts, the Federal Reserve pushed its key short-term interest rate as close to zero as possible.
Now, exactly seven years after that unprecedented decision, central bank policymakers unanimously declared the economy strong enough to finally start inching the rate up again.
“The economic recovery has clearly come a long way, although it is not yet complete,” Fed Chairwoman Janet L. Yellen declared Wednesday.
But the much anticipated hike was both good and bad news for the U.S. economy.
It validated the strength of the slow-moving recovery from the Great Recession, which investors cheered.
The Dow Jones industrial average rallied after the announcement, closing up about 224
points.
Read more: Janet Yellen says rate hike reflects the Fed's confidence in the U.S. economy - LA Times
Now, exactly seven years after that unprecedented decision, central bank policymakers unanimously declared the economy strong enough to finally start inching the rate up again.
“The economic recovery has clearly come a long way, although it is not yet complete,” Fed Chairwoman Janet L. Yellen declared Wednesday.
But the much anticipated hike was both good and bad news for the U.S. economy.
It validated the strength of the slow-moving recovery from the Great Recession, which investors cheered.
The Dow Jones industrial average rallied after the announcement, closing up about 224
points.
Read more: Janet Yellen says rate hike reflects the Fed's confidence in the U.S. economy - LA Times
