We have liftoff. The long and short of it follow — short first. The immediate reaction to the Fed’s first hike in 1- years, from a band “0 percent to .25 percent” to .50 percent: The prime rate moved mechanically to 3.50 percent, rising in lockstep as it will after each future increase in Fed funds.
At noon EST tomorrow, December 15, the Fed will raise its rate for the first time since June 29, 2006. A lot of your clients have retired since, or were in school then. No matter how much you have heard about the Fed’s pending “liftoff,” your clients will be alarmed by all the yelling.