Fed hikes rates for second time in a year, signals optimism

Federal Reserve Chairman Jerome Powell signalled growing optimism on the US economy while assuring investors that the central bank would not derail the expansion by aggressively tightening monetary policy.

Fed officials on Wednesday raised interest rates by a quarter point for the second time this year and upgraded their median forecast to four total increases in 2018, as unemployment falls and inflation overshoots their 2 per cent target earlier than previously projected.

“The decision you see today is another sign that the economy is in great” shape, Powell told reporters following the decision. “Frankly, I do think there is a