ETFs to Watch & The Fed

After weeks of speculating and all the volatility that comes along with that, the Federal Reserve finally made a decision on what to do with benchmark interest rates. The Fed dropped these rates down to zero back during the credit crisis as a way to jump start the struggling economy. The pervasive idea was that banks could borrow easily and loan money to corporations and individuals to spur capital growth. Whether you’d argue that the process was successful or that it wasn’t, the economy has been doing better. So much so, that Janet Yellen and her team began the process of thinking about “tightening”. With all eyes on the latest meeting, the Federal Reserve decided to keep these interest rates right where they were at zero percent. The continued zero interest rate policy (ZIRP) has equally as many implications for stock and bond ETFs as rising rates would have. So what happens now? How is your portfolio going to be affected?