U.S. Federal Reserve raises benchmark rate by 0.25%
The U.S. Federal Reserve raises interest rates by 25 basis points to one percent... and there are apparently more rate hikes in store before the year is up.
Shin Se-min looks at the second rate hike in three months,... which is the first under the Trump administration.
The Federal Reserve raised its benchmark rate by a quarter percentage point to a range of zero-point-7-5 to 1-percent,... spurred by steady economic growth, strong jobs numbers and confidence that inflation is rising to the Fed's target of two-percent. "Our decision to make another gradual reduction in the amount of policy accommodation reflects the economy's continued progress toward the employment and price stability objectives as assigned to us by law."
It's the first hike since President Trump came into office with promises to boost the economy,… and the third since the rate was lifted from near zero percent in late 2015.
As for further hikes, the Fed chair played down any plans to speed up monetary tightening. "For some time the committee judged if economic conditions evolved as anticipated, gradual increases in the federal funds rate would likely be appropriate to achieve and maintain our objectives."
The language used by the central bank is similar to that of previous statements. Policymakers stuck to their forecast of two more rate hikes this year and three more in 2018.
The Fed sees the U.S. economy growing 2-point-1 percent this year, unchanged from its forecast in December,... and it sees core inflation slightly higher than before... at 1-point-9 percent.