Since the financial disaster that was 2008, the U.S. Federal Reserve has seemed to put a lot of effort toward keeping the interest rate as close to zero as possible.
However, with things finally looking up, there’s very little reason for the Fed to stick so adamantly to zero growth. As William Dudley, New York Fed President, noted during a Wall Street Journal event in NY, “the economy is doing pretty well.” He went on to add further clarity to that musing by saying that he expects “that we probably will raise interest rates later this year.”
Additional Fed presidents from other cities have made similar remarks, which all but solidify any thoughts of potential into certainty. The only sources that don’t quite agree with projecting an increase in the Federal Reserve interest rate don’t go beyond just saying that the Fed is sending out “mixed messages” when it comes to whether or not the interest rate is going to increase by the end of 2015.
Even then, it is effectively unanimous among Fed higher ups and economists that the Federal Reserve is going to increase the interest rate by the middle of 2016. Both scenarios end up having a small jump in the interest rate and, in the bigger picture, probably end up with the same results.
As far as we should all be concerned, though, the situation where the interest rate rises sooner than later is more preferential. It allows any money we have saved or invested to earn that extra oomph that much sooner.