The US Federal Reserve has raised interest rates by 0.25%, the third rate rise in 2017.
The US central bank said 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, due in part to planned tax cuts.
The Fed said it anticipates three further increases in rates next year, unchanged from its previous forecast. The decision to raise interest rates, raising the cost of borrowing, takes the Fed farther away from the ultra-low rates it put in place during the financial crisis to boost economic activity.
The Fed is targeting a range of 1.25% to 1.5% for its benchmark rate. But a majority of officials said they expect interest rates above 2% will be appropriate next year.
- BBC
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