The Federal Reserve Open Market Committee is set to raise interest rates today, for the first time in nearly ten years. On June 29, 2006 the FOMC raised the target rate for fedral funds from 5.0 % to 5.25%.
At that point Ben Bernanke was but a mere puppy as Federal Reserve Chairman, just six months into the job and filling the shoes of the all *powerful* OZ, Alan Greenspan.
Ten years is a long time. Actually a very long time and to help put such a time span into context consider some of the things that have happened since the last time the Fed raised rates:
- President Barrack Obama was just over a year or so removed from being a State Senator.
- The iPhone was created. That is right the last time the Fed raised rates the iPhone had not yet been introduced.
- The Kardashian Invasion of every last square inch of internet, tv and grocery
store checkout real estate was still in our future.
- The general public, and dare I say the Fed themselves really had no idea what sub-prime mortgage loans were all about.