Market history · Central banks ·
The Fed's first rate rise since 2006
On 16 December 2015 the Federal Reserve raised its target range for the federal funds rate to 0.25–0.50%, ending a period at near zero that had begun in December 2008.
The move had been heavily signalled, and markets took it calmly. But it began a gradual tightening cycle, and the dollar's strength, along with weaker commodities, put pressure on emerging markets in early 2016.
The takeaway
A well-signalled policy change can still shift capital flows between regions.
Asset classes:Bonds
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