After almost a decade, US Federal Reserve hiked its near zero interest rates in December 16 meeting, which was a unanimous decision to hike 25 bp, along with the press conference underscoring a gradual pace of hike.
The target range for federal funds was increased to 0.25-0.50%. Fed chair Yellen ensured a gradual path of rate-hikes, taking pains emphasizing that it would take the data dependent approach for hiking rates in future.
"The dot plot shows only a modest adjustment of members' take on the rate path. For 2016, the FOMC members still see 100bp of rate hikes", says Commerzbank in a research note.
