In December, the United States Federal Reserve raised its policy interest rate for the first time in 9½ years. The last time the Fed actually started an upward phase in rates was as far back as 2004.
The Fed’s rationale for this change was that the US economy had sufficient strength that a zero interest rate was no longer needed – and, as such, it is a welcome development. The change had been very well telegraphed and was absorbed by financial markets without any immediate disruption.