Fed raises interest rate, signaling confidence in the economy
Federal Reserve Chair Janet L. Yellen (Saul Loeb/AFP/Getty Images)The Federal Reserve raised its benchmark interest rate by a quarter-point Wednesday, the third such increase in six months and a message of confidence in the strengthening of the U.S. economy.
The increase, which brought the Fed funds rate to between 1 percent and 1.25 percent, was highly anticipated by the markets. On Wednesday morning before the rate increase, Fed futures pointed to a 93.5 percent chance of a rate hike.
The rate hike “reflects the progress the economy has made and is expected to make toward maximum employment and price …