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US Fed raises interest rate by 25 basis points

With Trump planning tax cuts, central bank shifts outlook to one of faster growth, lower unemployment and inflation

Reuters 

The US Federal Reserve raised interest rates by a quarter point on Wednesday and signalled a faster pace of increases in 2017 as the Trump administration takes over with promises to boost growth through tax cuts, spending and deregulation. The rate increase, regarded as a virtual certainty by financial markets in the wake of a string of generally strong economic reports, raised the target federal funds rate 25 basis points to between 0.50 percent and 0.75 percent. "In view of realised and expected labour market conditions and inflation, the committee decided to raise the ...

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First Published: Thu, December 15 2016. 00:45 IST
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