Federal Reserve Announces Historic Interest Rate Hike
BOSTON (CBS/AP) -- The Federal Reserve raised a key interest rate to a quarter of a percent Wednesday, marking the end of a decade of near-zero rates.
Related: What An Interest Rate Hike Would Mean For You
CBS News reports that the central bank's decision was unanimous, and is the first rate hike since 2006.
Many analysts expect the Fed to gradually raise its short-term rate by a total of 1 percentage point by the end of 2016.
The rate the Fed controls, which represents the amount banks charge each other for overnight loans, is only one factor among many that can influence longer-term borrowing costs. And the Fed made clear it will assess the economy's health before raising rates further.
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