>> The Federal Reserve hiking rates for the fourth time since the end of the financial crisis. Janet Yellen and fellow policy makers at the Fed lifting the key lending rate Wednesday to a range between 1 to 1.25%. That's the highest since the Fed cut rates to near zero more than eight years ago.
And the Fed is expecting to do it again before the year is out.>> We continue to expect that the ongoing strength of the economy will warrant gradual increases in the Federal Funds rate to sustain a healthy labor market and stabilize inflation around our 2% longer run objective.
Nonetheless, in light of the softer recent inflation readings, the committee is monitoring inflation developments closely.>> The Fed sticking to its plan, even as retail sales saw their biggest drop in over a year. Why the optimism? A growth in hiring that's strong enough to push unemployment to a 16 year low.
Yellen is so confident, she revealed a plan to get rid of the trillions of dollars in assets the Central Bank bought to prop up the economy during the financial crisis. Reuters Fed correspondent Jonathan Spicer says the plan is risky for everyday borrowers.>> The Fed has more than $2 trillion in treasury bonds, government debt, and it has almost $2 trillion in mortgage backed securities.
The risk for the Central Bank was or is still that if it trips up on this plan to start slowly, gradually, incrementally getting rid of these mortgage backed securities, and the market overreacts to that and we see a huge spike, for example, in yields across the market. That could definitely be felt in the pocketbooks of everyday Americans.
>> But for now, parts of the market are betting against Yellen. While the Fed pushed its lending rate higher, interest rates on US Government debt hit their lowest all year.