The Federal Reserve said today it will raise its benchmark short-term interest rate for the first time in a year and expects to lift it faster than previously projected in 2017.
Officials said they would up the federal-funds rate by a quarter percentage point on Thursday, to between 0.50 percent and 0.75 percent. The move may cause home mortgages, consumer borrowing and business financing costs to rise as well.
The Fed said the improving economy was ready for higher loan costs, citing job gains and high consumer spending.
Additional hikes are expected in 2017. The Wall Street Journal writes that these increases will amount to a three quarter-percentage-point interest-rate increase over each of the next three years
Fed Chairwoman Janet Yellen was supported by a unanimous vote. Watch Yellen's Federal Reserve announcement here: