US Federal Reserve raises interest rates again

Federal Reserve Chairman Janet Yellen arrives for a hearing of the Joint Economic Committee on Capitol Hill, November 29, 2017, in Washington, DC.Image copyright

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Federal Reserve Chairman Janet Yellen has raised interest rates three times this year

The US Federal Reserve has agreed to raise interest rates by 0.25%, the third rate rise in 2017.

Policymakers at the US central bank say the move, which was widely expected, underscores “solid” gains in the US economy.

Officials also boosted their economic forecasts, projecting 2.5% growth in GDP in 2017 and 2018.

The Fed said it expected to make three further increases in rates next year, unchanged from its previous forecast.

The Fed is targeting a range of 1.25% to 1.5% for its benchmark rate.

A majority of officials also said they believe interest rates are on track to exceed 2% in 2018.

The decision to raise rates came at the conclusion of the Fed’s two-day meeting in Washington.

The move marks a further retreat from the ultra low rates that were put in place during the financial crisis to boost economic activity.

Federal Reserve Chair Janet Yellen, who will step down from the Fed in February, is speaking about the decision at a press conference this afternoon.

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