Fed Hikes Key Rate For Second Time In 3 Months
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WASHINGTON (AP) - The Federal Reserve is raising its benchmark interest rate for the second time in three months and signaling that any further hikes this year will be gradual. The move reflects a consistently solid U.S. economy and will likely mean higher rates on some consumer and business loans.
The Fed's key short-term rate is rising by a quarter-point to a still-low range of 0.75 percent to 1 percent. The central bank said in a statement that a strengthening job market and rising prices had moved it closer to its targets for employment and inflation.
JUST IN: The Federal Reserve announces it will raise interest rates by 0.25% https://t.co/T5uqoA85rO pic.twitter.com/Oww3xDcPUD
— CBS News (@CBSNews) March 15, 2017
The message the Fed is sending is that nearly eight years after the Great Recession ended, the economy no longer needs the support of ultra-low borrowing rates and is healthy enough to withstand steadily tighter credit.
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