Federal Reserve officials voted Wednesday to raise a key, short term interest rate for the third time this year.
Investors largely expected an increase in the federal funds rate — the interest that banks charge each other — based off public statements by Fed officials. The fed funds rate was increased to a range of 2 percent to 2.25 percent, up from a level of near-zero between the end of 2008 and late 2015.
The higher range points to an improving U.S. economy with inflation staying near the Fed's target of 2 percent. The vote to raise rates was 9 to 0.
In their statement announcing the decision, Fed officials removed a sentence in prior statements that said its interest rate policy was supporting a strong job market and a return to 2 percent inflation. By eliminating that statement, they're suggesting that those goals are now within reach and that rate hikes will likely continue.
Source : https://newsok.com/article/feed/6098311/the-latest-markets-cautious-ahead-of-fed-rate-decision154