Chart of the day

Today, the Fed increased rates by 0.25% as expected. For some perspective, today's chart illustrates the average change (blue line) in the fed funds rate following a major bottom. Based on this historical average, once the fed funds rate begins to rise it tends to keep rising for an average of about 19 months with an average increase of 3.4%. Currently (red line), rates are rising at a pace that is very similar to the last time Greenspan & Co. raised rates following a recession (gold dashed line). When it comes to raising rates, it appears that this Fed is always "measured".