Full text: US Fed raises key rate to 1.25%, expects economy to 'evolve'

Federal Reserve raised interest rates by 25 basis points for the second time in three months

The Federal Reserve raised interest rates by 25 basis points on Wednesday for the second time in three months and said it would begin cutting its holdings of bonds and other securities this year, signaling its confidence in a growing US economy and strengthening job market.

Here is the full text of the Federal Reserve's statement:

Information received since the Federal Open Market Committee met in May indicates that the labor market has continued to strengthen and that economic activity has been rising moderately so far this year. Job gains have moderated but have been solid, on average,