01:27 GMT +309 December 2019
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    US Federal Reserve Raises Interest Rate to 0.5%-0.75% Range

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    The United States’ benchmark interest rate will increase by 25 basis points to a range of 0.5 percent to 0.75 percent, now that the nation’s labor market and inflation have reached expected levels, the central bank’s policy-setting Federal Open Market Committee (FOMC) said in a statement Wednesday.

    WASHINGTON (Sputnik) – The statement read that the FOMC expects to raise short-term interest rates more frequently during 2017 and the two years thereafter, with as many as three increases each in 2018 and 2018, pending future analyses of US economic data.

    "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 1/2 to 3/4 percent," the statement explained, referring to the interest at which US banks charge each other for overnight loans.


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