Federal Reserve Raises Interest Rates in Historic Policy Shift

The moment markets have been waiting for: The Federal Reserve raised short-term interest rates by 25 basis points on Wednesday in a move that ends an unprecedented seven year era of rates near zero. The Fed also hinted at the pace of rates following the initial one, saying: ‘In determining the timing and size of future adjustments to the target range for the federal funds rate, the Committee will assess realized and expected economic conditions relative to its objectives of maximum employment and 2 percent inflation.’ Wednesday’s rate hike is the first one since June 2006. Nick Colas, chief market strategist at Convergex and Shehriyar Antia, founder of Macro Insight Group and former adviser to Fed Chair Janet Yellen, join TheStreet’s Scott Gamm for an in-depth discussion of what the Fed’s historic move means for stocks and the economy.