WSJ's Jon Hilsenrath explains why the Federal Reserve's decision Wednesday to raise short-term interest rates signals a new tightening phase due to the healthy economy. Photo: EAPU.S. government-bond prices posted their largest one-day gain since June on Wednesday after the Federal Reserve raised interest rates for the second time in three months. Traders said investors bought stocks and bonds after the central bank released economic forecasts showing that Fed officials continue to expect two more rate increases this year. Some market participants had expected indications for a potential fourth rate increase...

Source: Wall Street Journal March 15, 2017 22:26 UTC