US Federal Reserve raises key interest rate to 1.75-2 pc

The US Federal Reserve raised the benchmark lending rate today, the second increase of the year, and signalled two more hikes are coming in 2018 and four in 2019, a possible sign of concern about accelerating inflation.

The unanimous vote brings the federal funds rate to a range of 1.75-2.0 per cent but the quarterly economic forecasts show central bankers now expect the rate to end the year at 2.4 per cent rather than the 2.1 per cent projected in March.

That implies four total rate increases this year.