December 16, 2015
Fed Funds Rate Increases
After an exhaustive period of anticipation in the media and amongst the investment community, the Federal Open Market Committee (FOMC) concluded its December meeting by announcing that it has raised the federal funds rate target range by 25 basis points to one-quarter to one-half percent. This is the first change in the federal funds rate in seven years (since December 2008), and also marks the first increase since June 2006.
Lockwood Advisors, Inc. (Lockwood) has published a paper with its thoughts and recommendations related to the interest rate hike. Lockwood is an investment adviser registered in the United States under the Investment Advisers Act of 1940, and an affiliate of Pershing LLC, both wholly owned subsidiaries of The Bank of New York Mellon Corporation (BNY Mellon).