Five reasons to want a rate hike

The reason this is important is that December is obviously the last month of the year, but specifically, this year it is the last month prior to the start of an election year. Despite the fact that the Fed is meant to be apolitical, they have historically tried to avoid policy changes in election years. Part “B” to this is that the Fed desperately wants to raise the overnight rate from zero to something nominal like 0.25%. Their thinking is that, should the economy slow, they need some ammunition (lower rates back to zero) to help stimulate the economy and stave off a recession.  Read more