US Federal Reserve Raises Benchmark Interest by 0.25%

  • For the third time in a decade, the US Federal Reserve raised the benchmark interest by 0.25%.

    The Fed’s policy-setting Federal Open Market Committee (FOMC) voted for a raise in the key rate target to a range of 0.75-1.0%.

    It is expected that the Federal Reserve policymakers may increase rates three times in total this year. Reports also say that the Fed is planning to keep the cost of lending within a specific band between banks, and they do it by buying or selling financial properties.

    With a 9-1 vote, the decision received approval.

    As Fed has raised rates for the second time in three months, it is a hint that this year, further hikes will be steady.