# US raises key interest rate by 0.25% on strengthening economy - BBC News

> The US Federal Reserve raised its benchmark rate by 0.25% to a range of 0.5% to 0.75% on December 14, 2016, its second increase in a decade. The central bank now expects three rate rises in 2017, up from two in its September projections.

- Date: 2016-12-14 · published 2016-12-14T12:00:00.000Z
- Category: macro · region US · magnitude medium
- Page: https://feedsoft.ai/events/5969-us-raises-key-interest-rate-by-0-25-on-strengthening-economy-bbc-news
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

A faster expected tightening path lifts the dollar and borrowing costs, which tends to pressure dollar-priced commodities and can weigh on feed ingredient prices.

## Read by commodity

- DXY: bullish ▲

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| DXY | 2016-12-15 | 1 | +1.8% | 5.0 | The Fed's Dec 14 hike and its signal of three 2017 hikes instead of two was the direct catalyst for the dollar surge. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2021-03-30 | [US economy strength keeps pressure on yuan](https://feedsoft.ai/events/48335-us-economy-strength-keeps-pressure-on-yuan.md) | -0.5% | -1.9% |
| DXY | 2025-10-31 | [ECB leaves interest rates unchanged citing a resilient economy - OFX (US)](https://feedsoft.ai/events/22632-ecb-leaves-interest-rates-unchanged-citing-a-resilient-economy-ofx-us.md) | +0.3% | -0.2% |
| DXY | 2018-11-09 | [Gold edges down as Fed's interest rate view strengthens dollar](https://feedsoft.ai/events/61963-gold-edges-down-as-fed-s-interest-rate-view-strengthens-dollar.md) | +0.2% | +1.0% |
| DXY | 2018-07-17 | [Powell says strong economy will keep rate hikes coming \| AP News](https://feedsoft.ai/events/63944-powell-says-strong-economy-will-keep-rate-hikes-coming-ap-news.md) | +0.5% | +1.8% |
| DXY | 2021-12-15 | [Latam FX drops on rising U.S. interest rate risk \| Central bank \| NDA News UK](https://feedsoft.ai/events/43877-latam-fx-drops-on-rising-u-s-interest-rate-risk-central-bank-nda-news-uk.md) | -0.1% | -1.8% |

## Sources

- bbc.com: https://www.bbc.com/news/business-38323037

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.