Federal Reserve raises interest rates by 0.25 per cent
Wednesday, 13 June 2018 The Federal Reserve raised its key interest rate today as it continues its efforts to normalise monetary policy.
The US central bank moved the target range for its federal funds rate to 1.75 per cent to two per cent.
Markets had priced in a rate hike as a near certainty ahead of the meeting, with all eyes on the economic projections of the Fed's economists and prospects for more increases in the second half of the year.
Powell has consistently pointed to a need for a gradual tightening in monetary policy, with one interest rate rise already under his belt, at the central bank's meeting in March.
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The Federal Reserve raised interest rates by 0.25 percent and hinted at an accelerated timeline for rate hikes this year, given that U.S. economic activity "has been rising at a solid rate." Cheddar's Hope King and Tim Stenovec break down the details.