Interest Rate Hike Signals Stronger Economy

Statement

In response to today's announcement by the Federal Reserve to increase interest rates, Congresswoman Gwen Moore (WI-04), Ranking Member on the Financial Services Committee's Monetary Policy and Trade Subcommittee, released the following statement:

"The decision by Federal Reserve Chair Janet Yellen to raise interest rates by a quarter-percentage point is a distinct indicator that our economy is growing stronger and is on the path to recovery. With the Great Recession behind us, this rate hike is consistent with our collective goal of job creation and inflation targets. As Chairwoman Yellen indicated to Congress earlier this year, "Ongoing gains in the labor market, coupled with my judgment that longer-term inflation expectations remain reasonably well anchored, serve to bolster my confidence in a return of inflation to 2%.'

"This modest increase -- the first since 2006 -- will also help us avoid a more substantial rise in rates in the future and prevent a potential disruption in financial markets. Although risks from the global economy continue to persist, this is a measured and pragmatic response to our nation's current economic standing.

"As a result of President Obama's economic recovery policies, Americans can once again look toward the future with confidence and optimism."

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