A clear shift

US Fed rate hike reflects an uptrend in the global economy

The United States Federal Reserve acted in line with expectations when it raised the policy interest rate (the so-called Fed Funds rate) by 25 basis points (0.25 per cent) in its policy review last week. This was the third rate hike of 2017 and it was accompanied by an optimistic statement. The federal funds rate is now in a range of 1.25-1.50 per cent, which is still very low by historical standards. The Federal Open Markets Committee (FOMC) signalled that it planned to raise rates three more times in 2018, and twice in 2019. This was also the last FOMC