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Economic Outlook by Alan Blinder | December 2015

It was time--or so the Federal Open Market Committee decided on Wednesday.

The Fed surprised approximately no one by raising the target range for the federal funds rate from 0-25 basis points, where it had been for seven years, to 25-50 basis points. Also, as widely expected, it described its likely future rate hikes as “gradual”—a word Chair Janet Yellen repeated several times in her press conference. And it emphasized that “the actual path of the federal funds rate will depend on the economic outlook as informed by incoming data.” Yes, gradual and data-dependent, just as we thought. Read More