Fed raises interest rate
March 15, 2017
• Up by a quarter point
• Says it will hold inflation in check
The Federal Reserve has raised the interest rate it charges its bank customers by one-quarter of a percentage point, putting the new rate at 1.0 percent.
It says its raising its rate in view of current and expected labor market conditions and inflation.
The Fed says the labor market has continued to strengthen and that economic activity has continued to expand at a moderate pace. Job gains have remained solid over the past month, with the unemployment rate little changed in recent months.
Household spending has continued to rise moderately while business fixed investment appears to have firmed somewhat. Inflation has increased in recent quarters, moving close to the Fed’s 2 percent longer-run objective.
It’s the second interest rate increase in three months and the Fed hints that there could be further increases later in the year.