The Federal Reserve announced today that it would raise the target range for the federal funds rate by a quarter of a point.
“In view of realized and expected labor market conditions and inflation, the Committee decided to raise the target range for the federal funds rate to 1-3/4 to 2 percent,” the Fed said in a statement. “The stance of monetary policy remains accommodative, thereby supporting strong labor market conditions and a sustained return to 2 percent inflation.”
The Fed also signaled that it may raise rates twice more in 2018, with Fed Chair Jerome Powell saying that the US economy was in “great shape.”
“The economy is doing very well,” Powell said at a news conference after the meeting. “Ongoing job gains are boosting wages and confidence.”
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