The Federal Reserve announced Wednesday it will raise short-term interest rates for the first time in almost a decade.
Saying the increases will be “gradual” and in line with previous projections, the Federal Open Market Committee voted to set the new range for the federal funds rate at 0.25 percent to 0.5 percent, up from zero to 0.25 percent, said Bloomberg Business News.
“The committee judges that there has been considerable improvement in labor market conditions this year, and it is reasonably confident that inflation will rise, over the medium term, to its 2 percent objective,” the FOMC said in a statement.
The Fed said it raised rates “given the economic outlook, and the time it takes for policy actions to affect future economic outcomes.”
The increase draws to a close record-low rates that were part of the Federal Reserve's policies designed to stimulate the U.S. economy in the wake of the most devastating 2008 financial crisis, said Bloomberg Business News.
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