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In the News

Why might the US raise its interest rate?

Ruth Tarrant

14th December 2015

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On Wednesday this week, the US Federal Reserve is widely and globally expected to raise its interest rate by one quarter of a percentage point, in its first increase since June 2006. The Economist ran an interesting leader last week on why the Fed might raise rates, effectively tightening monetary policy, taking the view that it was purely a "credibility" exercise because they had previously said that they would raise rates, rather than an example of being able to fine-tine the economy.

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Ruth Tarrant

Ruth has been Subject Lead in Economics at tutor2u for many years after a career of teaching Economics, Business, Politics and Maths in a range of secondary schools. She is a highly experienced A level Economics Examiner, and also teaches undergraduate Economics on a very part-time basis at the University of Oxford. Ruth is passionate about making economics fun, engaging and accessible.

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