Finance news you need to know today

THE Federal Reserve is raising a key interest rate for the first time in a year, reflecting a resilient US economy and expectations of higher inflation.

THE Federal Reserve is raising a key interest rate for the first time in a year, reflecting a resilient US economy and expectations of higher inflation.

The Fed has increased its benchmark interest rate by a quarter of one per cent to a range of 0.5 to 0.75 per cent — its first move in a year. The Fed also signalled three likely hikes in 2017, up from two previously.

In response the Australian dollar has dropped sharply against the US dollar. At 0630 AEDT on Thursday, the local unit was trading at 74.53 US cents, down from 74.89 cents on Wednesday.

The Australian share market is set to open lower, following Wall Street down after the US Federal Reserve interest rate hike.

At 0646 AEDT on Thursday, the local SPI 200 share price futures index was down 10 points, or 0.18 per cent, at 5572 points.

ELSEWHERE
NEW YORK — Oil major Exxon Mobil says President Darren Woods will become chief executive in January after the retirement of Rex Tillerson, who is US President- elect Donald Trump’s pick for secretary of state.

LOS ANGELES — Amazon has officially fired the starting gun on its worldwide race against Netflix to capture subscription-video viewers — and its global Prime Video service is priced well under Netflix.

WASHINGTON, D.C. — US President-elect Donald Trump and Silicon Valley executives will have a chance to smooth over frictions when they meet at his Manhattan tower, after both sides made no secret of their disdain for each other during the presidential campaign.

WASHINGTON, D.C — Federal Reserve Chair Janet Yellen said that the economy doesn’t need fiscal stimulus from the incoming Trump administration. Dr Yellen said on Wednesday at a news conference after the Fed’s move to hike benchmark interest rates that such policies would be unlikely to maximise employment, since the unemployment rate is now at 4.6 per cent, slightly below the Fed’s own long-term target.