>> After talking about it all year, but kicking the can down the road meeting after meeting, Fed Chair Janet Yellen on Wednesday finally hiking interest rates for only the second time since the end of the financial crisis. I'm Conway Gittens in New York. The Federal Reserve has embarked on an unprecedented experiment.
Pushing interest rates near zero for eight years and throwing $3.5 trillion at the economy all in an effort to push the economy out of the doldrums caused by the worst financial crisis since the great depression. But now the economy is growing at a slow yet steady pace. There are no problems emanating from international shores and so the Fed can resume what it started a year ago by pushing interest rates higher.
Now many expect the economy to get even stronger, if President-elect Donald Trump follows through on his plans, including a $3 trillion infrastructure proposal, and a reduction in taxes for the rich and corporations. But now the Fed might have a new problem. Before it was worried about how gradually it might have to raise interest rates but if the US economy is going to pick up and risk over heating, then the Fed might have to re-think how aggressive it's going to be with raising interest rates in 2017.