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.
