It was the third rate hike by the US Fed this year and the eighth such move since December 2015.
Newfound fears of investor panic can be soothed
Decisions made by Feds crucial as they determine how money is wired around the world
US Federal Reserve Chair Janet Yellen (pictured) said it is appropriate for US central bankers to "proceed cautiously" in raising interest rates because the global economy presents heightened risks.The speech to the Economic Club of New York made a strong case for running the economy hot to push away from the zero boundary for the Federal Open Market Committee (FOMC)'s target rate."I consider it appropriate for the committee to proceed cautiously in adjusting policy," Yellen said in the text of prepared remarks Tuesday. "This caution is especially warranted because, with the federal funds rate so low, the FOMC's ability to use conventional monetary policy to respond to economic disturbances is asymmetric."US Treasuries extended gains following her remarks, while the dollar weakened and US stocks erased earlier losses. The Standard & Poor's 500 Index was up 0.2 per cent to 2,041.03 at 12:22 pm in New York, after falling as much as 0.4 per cent."Yellen has doubled down on the dovishn
The committee now projects the federal funds rate at 0.9 per cent by the end of 2016, perking up to 1.6 per cent by 2017
The dollar went on the back foot as a result, while US Treasury yields fell
Some wanted to reduce large portfolio of mortgage-backed securities by August, others want it later
The interest rate outlook for next year remained largely unchanged, with three hikes envisioned
Veteran central banker to leave by mid-October
Trump said on Monday that he was "very, very close" to making a decision on who is going to lead the central bank
The Fed chairman announced that he'll soon start giving press conferences every -- rather than every other -- policy meeting
What to expect from Trump-appointee Federal Reserve Chairman Jerome Powell's tenure? What kind of Federal Reserve is he taking over?
I believe your legacy will depend on whether you succeed in protecting the Fed's independence, Mervyn King's message Jerome Powell
Powell will replace Janet Yellen, whose term ends in February
The next US Fed Chair Jerome Powell will face some extraordinary challenges at the outset of his five-year term
This was the third rate hike this year with the Fed sticking to its projection for three rate increases next year, while keeping a close look at inflation data.
The Fed has raised rates twice this year and currently forecast another nudge upwards by the end of 2017
Globally, gold was down 0.21% at $1,297.80 an ounce in Singapore
Yellen said in a press conference that the central bank was ready to change the interest rate outlook if needed
Stock markets and bond yields were largely unmoved by the decision