U.S Fed Reserve raises rates for the first time in almost a decade

The U.S. Federal Reserve raised interest rates for the first time in nearly a decade, saying its decision was prompted by a considerable improvement in labor market conditions this year, and said “it is reasonably confident that inflation will rise, over the medium term, to its 2 percent objective.”

“Given the economic outlook, and recognizing the time it takes for policy actions to affect future economic outcomes, the Committee decided to raise the target range for the federal funds rate to 1/4 to 1/2 percent. The stance of monetary policy remains accommodative after this increase, thereby supporting further improvement in labor market conditions and a return to 2 percent inflation,” it said in a statement.

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