Fed Raises Interest Rates for Sixth Time Since Financial Crisis
Source: New York Times
The Federal Reserve raised interest rates on Wednesday by a quarter of a percentage point and signaled that the central bank is on track to raise rates another two times in 2018, while expressing increased confidence in the economic recovery.
■ The Fed said it would raise its benchmark interest rate to a range of 1.5 percent to 1.75 percent, marking the sixth time since the financial crisis that it has raised rates.
■ The Fed said at the conclusion of a two-day policy meeting that it expects to increase rates another two times this year as it continues its climb back to more normal interest rate levels. Officials also increased their expectations for economic growth this year in the United States, declaring that “the economic outlook has strengthened in recent months”. They said they expect to raise interest rates three times next year, an increase from the two increases in 2019 that they forecast in December.
■ Jerome H. Powell will provide remarks following his first policy meeting as Fed chairman. Mr. Powell, a former Fed governor, succeeded Janet L. Yellen last month. Analysts do not expect him to deviate from Ms. Yellen’s preferred path of slow and steady rate increases, nor to wade too deeply into controversial topics, such as the tariffs announced by President Trump.
Read more: https://www.nytimes.com/2018/03/21/business/fed-interest-rate.html
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