The Recent Federal Reserve Board Rate Hike

“The Recent Federal Reserve Board Rate Hike: Little Immediate Impact on Middle Market Merger and Acquisition Activity” by Brian Reed and Jacob Tate in the Houston Business Journal (February 18, 2016)

The U.S. Federal Reserve System (Fed) announced in December it was raising interest rates by 25 basis points. That increase was the Fed’s first rate hike since 2006. The rate hike equates to short-term interest rate increases in the .25 percent to .50 percent range for many loans.

The most substantial effect of the Fed’s announcement is the possibility the rate hike may indicate additional rate hikes in the near future, rate hikes that could have a greater impact on various industry sectors and the economy as a whole.

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