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After the Fed interest rate hike on Dec. 16 (Wednesday), investors are anxious to know when the next rate hike will be.
Last week's quarter-percentage point (0.25%) Fed interest rate hike was the first for the U.S. Federal Reserve since June 2006. The Fed's vote to raise rates was unanimous, signaling its increased confidence in the U.S. economy.
At a press conference on Dec. 16, Fed Chairwoman Janet Yellen said the U.S. labor market and economic activity will continue to grow steadily in the following months.
The Fed's ultimate goal is to "normalize" its monetary policy, a strategy to remove its easy money accommodations slowly over time.
But Money Morning Capital Wave Strategist Shah Gilani sees the Fed's "normalization" strategy happening even slower than the central bank anticipates.
"The Fed can't normalize rates any time soon," said Gilani. "All they can do is raise rates a small amount and see what happens."
The Fed interest rate hike was based on economic indicators that it thinks will continue to improve in the future, such as the unemployment rate, job growth, and the inflation rate.
And if the economy stays stable after the Fed's initial interest rate hike, here's how the Fed will raise rates in 2016.