Fed raises rates from 0 percent to .25 percent

[Cubby]

It should have been done a year or two ago, but better late than never.

After 6 long years the government is no longer penalizing those who save money. I like how I'm supposed to feel bad for people who've borrowed, they've had ZERO PERCENT for 84 months! Their free ride is over.

The recession ended in June 2009. Why did it take the Fed so long to do this? I know every time it was hinted at the Dow dropped 200 points, but there is absolutely no reason for a growing economy to have a 0% interest rate 6 years after the crisis is over. I know it was a weak recovery, but they could've raised it to say, 1% by last year.

[Cubby]

You realize that the actual interest rates on loans wasn't 0% right? It was certainly low, but more like 1-2 percent depending on where. Also, spending is absolutely vital to the economy, so we should be encouraging it as much as possible. Saving money is not a risk, it doesn't really stir economic growth, and it's impossible for most people to do until they enter their 30's or 40's.

I have no idea what the interest rate was on loans. The Federal Funds rate was between 0 and 0.25%, that was what I had an issue with. They could have raised the Federal Funds rate to 1% last year or even 0.5% in 2013, but apparently the crisis wasn't over yet. I think it was more that they feared the potentially bearish Wall Street/Dow Jones reaction.

I disagree that most people can't save money until they're in their 30's or older. There are many ways to do it, some just don't want to.