Fed lifts interest rates, signals tentative hikes ahead

According to a statement issued by the Federal Open Market Committee, the US Federal Reserve (Fed) raised interest rates and signaled further increases in 2019, albeit at a slower pace.

The post-meeting statement said that the Committee decided to raise the target range for the federal funds rate to 2-2.25% to 2‑2.5%.

The Committee also stated that some further gradual increases in the benchmark rate would be consistent with the country’s economic activity and labor market conditions, as well as the central bank’s 2% inflation objective over the medium term.

Federal Reserve Board and Federal Open Market Committee also released their economic projections, with only modest revisions. The projection of growth for this year was revised slightly down to 3% from 3.1%, and to 2.3% from 2.5% for next year. The central bank’s projection of the US economy’s long-run growth rate was revised up to 1.9% from 1.8%, meanwhile.