BREAKING Federal Reserve Hikes Benchmark Interest Rate

As expected. the Federal Reserve has announced following its FOMC monetary policy meeting that it is increasing the benchmark interest rate it controls by 25 basis points.

Specifically, the Fed Funds target rate has been increased to the 1.25% to 1.50% range
from the 1.0% to 1.25% range.

Voting for the FOMC monetary policy action were Janet L. Yellen, Chair; William C. Dudley, Vice Chairman; Lael Brainard; Patrick Harker; Robert S. Kaplan; Jerome H. Powell; and Randal K. Quarles. Voting against the action were Charles L. Evans and Neel Kashkari, who preferred at this meeting to maintain the existing target range for the federal funds rate.

 -RW

UPDATE

Based on just-released Fed policy forecasts, the general belief amongst Fed policymakers is that the  Fed’s target range for interest rates will reach 2.1 percent by the end of next year, which suggests 3 rate hikes next year.