--- title: The Federal Reserve Raises Interest Rates At Its December 2017 FOMC description: market commentary, Federal Reserve, raising interest rates, FOMC meeting, increase federal funds rate from 1.25% to 1.50%, labor market, household spending image: https://investor.valueline.com/hubfs/VL%20Blog%20Images/Financial_3140396_200x140.jpg --- [![The Value Line Blog](https://investor.valueline.com/hubfs/VL%20Blog%20Images/vl_blog_header.png)](https://investor.valueline.com/blog) [Market Commentary](https://investor.valueline.com/blog/topic/market-commentary) # The Federal Reserve Raises Interest Rates At Its December 2017 FOMC December 13, 2017 The Federal Reserve, which has become increasingly transparent in recent years, again lived up to its reputation, voting to raise interest rates following the conclusion of its two-day FOMC meeting, which adjourned at 2:00 PM (EST) this afternoon. In its accompanying statement, the central bank noted that it would increase the federal funds rate from 1.25% to 1.50%. The bank had been expected to do just that. It maintained, as a rationale for this move, that the nation's economy was being pushed forward by a strengthening labor market and rising household spending. At the same time, the Fed noted that inflation was still running below the Fed's 2% annual target, and that it would likely continue to do so in the year ahead. However, longer term, it said that it saw inflation finally stepping up. The Fed also said that while hurricane-related disruptions and rebuilding had affected economic activity in recent months, the economic outlook had not been altered materially. In looking out to future rate action, the bank said, as per usual, that it would be affected by economic growth conditions and price inflation. Expectations are that conditions will warrant further gradual interest rate increases in the coming months. As before, we sense that the bank will vote for at least two, but more likely three, rate hikes in 2018. That policy, meantime, should be sufficiently benign to keep the current long business expansion intact. Wall Street apparently agrees, as the Dow Jones Industrial Average is now boasting a 135-point gain on the day. *At the time of this article's writing, the author did not have positions in any of the companies mentioned.* [![Register now for our free One Stock to Buy webinar](https://no-cache.hubspot.com/cta/default/2532383/5a80130b-f0ce-4bd8-acbd-f077f2232ec5.png)](https://cta-redirect.hubspot.com/cta/redirect/2532383/5a80130b-f0ce-4bd8-acbd-f077f2232ec5) ### Popular Posts Search Search Blog ### Topics - [Investing 101 (2)](https://investor.valueline.com/blog/topic/investing-101) - [Market Commentary (37)](https://investor.valueline.com/blog/topic/market-commentary) - [Stock Highlights (390)](https://investor.valueline.com/blog/topic/stock-highlights) - [Stock Market Today (2071)](https://investor.valueline.com/blog/topic/stock-market-today) Copyright 2026 Value Line, Inc. All Rights Reserved. Factual material is obtained from sources believed to be reliable and is provided without warranties of any kind. VALUE LINE IS NOT RESPONSIBLE FOR ANY ERRORS OR OMISSIONS HEREIN OR ANY DAMAGES OR LOSSES ARISING FROM ANY USE OF THE INFORMATION CONTAINED HEREIN. This blog is strictly for subscriber's own, non-commercial, internal use. No part of it may be reproduced, stored or transmitted in any printed, electronic or other form, or used for generating or marketing any printed or electronic publication, service or product. Officers, directors, or employees of Value Line, Inc. and its affiliates and subsidiaries, and EULAV Asset Management, may own stocks that are featured in this email. Nothing herein should be construed as an offer to buy or sell securities or to give individual investment advice. Value Line, the Value Line logo, The Most Trusted Name in Investment Research, “Smart research. Smarter investing.”, The Value Line Investment Survey, Timeliness, and Safety are trademarks or registered trademarks of Value Line, Inc. and/or its affiliates in the United States and other countries.