After much delay and much warning, the Fed has finally raised the Fed Funds rate from a range of 0-0.25% to 0.25-0.5%.
The move signals confidence in the ongoing recovery in the US economy after the Global Financial Crisis.
With the Fed decision out of the way, global shares are likely to resume their rising trend, but with US shares a relative under performer. Bond yields are likely to remain low which should be positive for real assets.
Rising US interest rates will help maintain downwards pressure on the value of the Australia Dollar through 2016.
Follow the link below for Dr. Shane Oliver’s full article: