Fed Raises Interest Rates by a Quarter Point

The U.S. Federal Reserve on Wednesday announced it will raise interest rates by a quarter point and said it eyes a faster pace of increases in 2017. According to Reuters, “The rate increase, regarded as a virtual certainty by financial markets in the wake of a string of generally strong economic reports, raised the target federal funds rate 25 basis points to between 0.50 percent and 0.75 percent.” The rate increase represents only the second time in the past decade that the Fed has raised rates—with last December being the first. The Fed cut rates to near-zero during the 2007-2009 financial crisis.