The US Fed has delivered a nice blow "Christmas present" to Main Street businesses. The US Fed has NEVER cared about Main Street, it ONLY cares about Wall Street. The collapse of the US economy will accelerate, while the Fed pushes out fake statistics pretending things are OK...Yellen says policymakers have raised rates now "to keep the economy moving along the growth path its on ... we would like to avoid a situation where we have left so much accommodation in place for so long that we overshoot those objectives", meaning they are forced to "tighten abuptly" and risk undermining the recovery. She says that while policymakers are "reasonably close" to achieving one part of their mandate: full employment, she recognises they are "significantly short" of achieving the second part: keeping inflation at 2pc. Policymakers will monitor the data closely in the coming months, though there is no formula on how policymakers would proceed with future rate hikes. Inflation stood at 0.2pc in October, well below the Fed's 2pc target. Yellen repeats that much of the recent downward pressure on inflation has come from "transitory factors" such as falling oil prices "that we expect to abate over time". She says "diminishing labour slack" is expected to put "upward pressure" on inflation in the coming months. Yellen also reminds everyone that it takes time for monetary policy to filter through to the economy. If policymakers delayed rate hikes for "too long" they may have to tighten "relatively abruptly to keep the economy from overheating and inflation from overshooting". This could push the economy back into recession, she says. She says "even after today's increase the stance remains accomodative", with the FOMC expecting "gradual increases in the Federal Funds Rate.