The Federal Reserve increased short-term interest rates Dec. 16 for the
first time in nearly a decade. The action capped a year of uncertainty
about global asset markets. The possibility of a Fed rate hike had been
a key contributor to market volatility throughout 2015.
The Federal Reserve is almost certainly going to raise very short-term
interest rates for the first time in nearly a decade when it meets in
Washington next week. For us, as municipal bond investors focused on
income generation over the long term, this is good news.