The United States Federal Reserve Bank raised the target fed funds interest rate range by 25 basis points to 0.50%-0.75% from 0.25%-0.50%. This is the second interest rate hike since the Fed kept its target rate range near zero following the financial crisis. Projections by officials have also increased from two expected hikes in 2017 to three. The increased expectation for interest rate normalization helped surge the USD to new highs. The Bank of England held its December policy meeting this week leaving key interest rates unchanged, siting the USD’s strength as it causes capital flight fears in China and uncertainty of banking in the Eurozone.
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