US Federal Reserve in its 16th December meeting unanimously raised the federal fund rate by 25 basis points to between 0.25 and 0.50 per cent. This is the first rate hike in US since 2006 and is significant as it reverses the trend since 2008 financial crisis, there by sending out a positive signal about the revival in the world's largest economy, which would also have a positive impact on the rest of the world.