Fed's rate hike goes off without surprises

By Joseph Lawler, Joseph Lawler

Published December 20, 2015

Janet Yellen appears to have pulled off the first interest rate increase in nine years without a hitch, despite a number of potential obstacles.

The interest rate targeted by the Fed traded at 0.37 percent Thursday, the first day of the Fed's new higher target, the Federal Reserve Bank of New York reported Friday. That is nearly exactly in the middle of the 0.25 percent to 0.50 percent the Fed set Wednesday.

Movements in stock markets were relatively mild through Thursday, as were changes in the dollar and commodities.

Not only was Thursday the first day in the last nine years of short-term rates above zero, it was the first time the Fed had to rely on new tools for raising rates.