Fed raises rates by quarter-point for second time in three months

Mortgage button on a keyboard

The Federal Open Market Committee said in its statement that the labor market has continued to strengthen and economic activity has expanded at a moderate pace.

There was not much change in economic forecasts from the Fed's December meeting either, with unemployment, inflation and federal funds median forecasts unchanged from December.

Federal Reserve Chair Janet Yellen speaks during a news conference in Washington, D.C., on Wednesday.

The market has also shown incredible resiliency over its history, and we expect to see the same thing happening again in the coming weeks and months. Investors had widely expected the central bank's rate increase, which was spurred by steady economic growth, strong job gains and confidence that inflation is rising to the Fed's target.

Fourteen primary dealers said they saw the Fed raising rates to 1.25-1.50 percent at its Dec 12-13 meeting.

Fed's preferred inflation measure, the personal consumption expenditures price index, is expected to hold at 1.9 percent this year, and 2.0 percent in 2018, which is the Fed's target.

Fed officials hinted that it will hike interest rates two more times this year, as it had previously anticipated. The Fed had cut during the 2008 financial crisis to a record low in order to help steady the economy and only gradually began to increase it at the end of 2015.

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.

Bears Have A Busy First Day In Free Agency
Things in Chicago are pretty gloomy this morning as the Chicago Bears have struck out on many of their top free agent targets. They're a pair of new offensive parts, the first a speedy deep threat and the latter a battering ram for the running game.

The Fed raised interest rates by 0.25 percentage points Wednesday, saying it is confident in the USA economic growth.

Meanwhile, the stock market has been climbing, and the Dow Jones Industrial Average surpassed a record 21,000 points in February.

S&P 500 e-minis were up 4.75 points, or 0.2 percent, with 70,767 contracts traded.

10 year US Treasury bonds fell more than seven basis points to 2.51 per cent.

Fitch also said that market expectations for a permanently lower equilibrium interest rate in the United States and the continuation of ultra-loose monetary policy for several more years could be increasingly challenged. The Nasdaq edged up 11 points, or 0.2 percent, to 5,868.

The dollar, meanwhile, is down 0.1 percent against the Japanese yen, at 114.63 yen.

The annual unadjusted Consumer Price Index released on Wednesday increased 2.7 percent, the highest in five years, and the unadjusted core CPI, excluding volatile food and energy prices, increased 2.2 percent for the full year.

Related news:

Hot News

isis-killer-beheading-video-story-top Charlie's Choices: Dive into the NCAA madness!
Mar 16, 2017 - 16:16
Be sure to pick the number one seeds in the round of 64, because the number one seeds are 128-0 all time in the opening round. Services like Sling TV , PlayStation Vue , and DirecTV Now will offer some combination of March Madness 2017 content.

Trump reveals first federal budget
Mar 16, 2017 - 15:34
That cash injection would then be offset by cuts to more than 18 other government agencies and discretionary spending programmes. And it eliminates $5.8bn from the National Institutes of Health, which carries out biomedical and health research .

The Federal Funds Rate And How It Impacts You
Mar 16, 2017 - 01:18
Participants estimated a target rate of 1.4 percent for 2017, a 2.1 percent rate for 2018, and a 3.0 percent rate for 2019. Nakosteen said consumers might see rates for borrowing tools like home mortgages and auto loans creep upward.

isis-killer-beheading-video-story-top USA carrier joins South Korea drills, North Korea warns of 'merciless' strikes
Mar 15, 2017 - 13:55
But Beijing is concerned that THAAD will breach its fences, prompting official protests and boycotts of South Korean products. In response, North Korean state media went so far as to criticize China implicitly for "dancing to the tune of the USA ".

isis-killer-beheading-video-story-top There's more to women's NCAA tournament than UConn
Mar 15, 2017 - 12:09
Danny Manning has done a tremendous job so far in Winston-Salem, engineering a turnaround from a 2-16 season a year ago . He took home All-ACC first-team honors as a result this season but is far from the only scoring threat on the team.

Dutch voters head to polls as divisive elections kick off in Netherlands
Mar 15, 2017 - 11:46
In both the Brexit referendum and the United States election, undecided voters overwhelmingly chose the anti-establishment option. Most analysts still expect the Liberals to win the most seats, barely, and form a coalition with likely four other parties.

isis-killer-beheading-video-story-top Syracuse, Texas-Arlington & More Teams Snubbed From 2017 March Madness
Mar 15, 2017 - 09:21
Tomorrow, the maddest month of the year truly kicks into high gear when the first four games of the NCAA Tournament get underway. So before you go homertastic with your bracket , allow us to fill you in on what to expect from U-M and MSU in this tournament.

isis-killer-beheading-video-story-top USA deploying attack drones to South Korea
Mar 14, 2017 - 07:47
Over the past year, technological advances in North Korea's nuclear and missile programmes have dramatically raised the stakes. The council report was the first by Ojea Quintana, who is from Argentina, since he took the post previous year .

isis-killer-beheading-video-story-top Let the Madness Begin!… NCAA Tourney is Here
Mar 14, 2017 - 04:24
It made sure that if they are going to join UCLA , Duke and Florida in the history books, they are going to earn it. Perhaps even Kentucky , with a title at the SEC tournament, could sneak into the mix for the final No. 1 seed .

isis-killer-beheading-video-story-top Paul Ryan "can't answer" how many people will lose insurance under Trumpcare
Mar 13, 2017 - 16:16
An estimated 85 percent of the 10 million to 12 million people buying individual insurance on the exchanges got a federal subsidy. For one, the new provision would allow insurance companies to collect the fees, while Obamacare's penalty went to the government.

isis-killer-beheading-video-story-top UM Receives No. 7 Seed, Draws Oklahoma State for NCAA Opener
Mar 13, 2017 - 11:23
Miami is coached by Jim Larranaga, who coached the George Mason team that upset the Spartans in the first round 11 years ago. Blame fatigue from the two previous games if you want, or even blame it on the late finish in the Maryland win.

isis-killer-beheading-video-story-top House panels to launch fight in Congress over Obamacare replacement
Mar 12, 2017 - 14:13
The plan includes an "advanceable" tax credit, based on age and families size, which people can use to buy insurance. The Medicaid cuts would also slash funding for treatment of drug addiction, which Trump had vowed to expand.

New England Patriots land WR Brandin Cooks in trade
Mar 12, 2017 - 13:59
Klein since the start of free agency, and are expected to use their newly acquired draft picks on defensive players. If Butler does re-sign with the Patriots, however, it does make a formidable 1-2 punch at the cornerback position.

isis-killer-beheading-video-story-top North Carolina to face Miami in ACC tourney
Mar 11, 2017 - 12:38
Giles provided game-altering momentum after teammate Amile Jefferson ended up in foul trouble in the North Carolina game. Freshman Jayson Tatum led all scorers with 25 points, and Luke Kennard recorded a double-double (24 points, 10 rebounds).

isis-killer-beheading-video-story-top Cris Carter: Why Tony Romo to the Texans could threaten the Patriots
Mar 10, 2017 - 10:15
Remember, the Browns have the number one pick overall, and they just earned a few higher round picks by pulling off this deal. I'd be surprised if we see Osweiler playing for the Browns in the fall, because this trade wasn't about acquiring Osweiler .