Putting a 0.25% Interest Rate Hike into Perspective

Maybe the most talked about thing in economics over the last few years is the Federal Reserve and how low they’re keeping interest rates. The question that keeps getting asked is: when will the Fed raise interest rates next?

Yesterday, some historical context was provided about this.

In some respects, not enough people are taking a step back and looking at the long history of rates. In the chart below you’ll see two things. The blue line shows where the Fed has positioned rates since it was founded. Then, on the bottom right corner, you’ll see some red writing and a red circle – it’s remarkable that such a small move in rates can cause so much market disarray:

The Long History of Interest Rates

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