WASHINGTON: The US Federal Reserve on Wednesday raised the benchmark interest rate a quarter point, noting that inflation is moving closer to the central bank’s two percent target. The Fed’s policy-setting Federal Open Market Committee (FOMC) voted to raise the key federal funds rate to a range of 0.75-1.0 percent. They see the benchmark rate rising to 2.1 percent next year, the same as in the December Summary of Economic Projections (SEP), which would mean another two rate hikes in 2018. The Fed last acted in December when it adopted only its second interest rate increase in a decade, but it has repeatedly cited the uncertainty surrounding economic outlook while details of Trump’s economic policy program remain scarce. That likely would cause the Fed to raise interest rates even faster—and possibly put Yellen at odds with Trump.

Source: Manila Times March 15, 2017 18:33 UTC