Federal Reserve raises interest rates

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Jerome Powell arrives to takes the oath of office as he is sworn-in as the new Chairman of the Federal Reserve (FED) at the Federal Reserve Building in Washington, DC, February 5, 2018.Image copyright
AFP/Getty

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Federal Reserve Chair Jerome Powell is presiding over a sea change in US policy

The US Federal Reserve has voted to raise the target for its benchmark interest rate by 0.25%, citing solid economic expansion and job gains.

The widely-anticipated decision will lift the target for the central bank’s benchmark rate to 1.75%-2%, the highest level since 2008.

It is the seventh time the bank has raised rates since 2015.

A majority of Fed officials also said they expect two more rate rises this year, more than previously forecast.

The Fed announced the rate rise at the close of a two-day meeting in Washington.

Why US rates have a global impact

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