U.S. Federal Reserve officials announced a modest interest rate hike on Wednesday, predicting two more this year as the American economy continues to grow.
The Fed raised its target range one-quarter of a percentage point, to 1.75 to 2 percent.
The Fed cited the strength of the economy in its statement announcing the rate hike.
“In view of realized and expected labor market conditions and inflation, the Committee decided to raise the target range for the federal funds rate to 1-3/4 to 2 percent,” read a portion of a Federal Open Market Committee statement released Wednesday afternoon.
“The stance of monetary policy remains accommodative, thereby supporting strong labor market conditions and a sustained return to 2 percent inflation.”