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Fed Raises Rates for First Time in 2016, Anticipates 3 Increases in 2017 Central bank will nudge up the federal-funds rate by a quarter percentage point to between 0.50% and 0.75% Federal Reserve Chairwoman Janet Yellen explains the decision to raise the federal-funds rate by a quarter percentage point, and the expectation for further increases in 2017.
Nearly seven years ago the Fed put its benchmark interest rate close to zero as a way to bolster the economy. And for months now, officials have said they might raise rates by the end of 2015. Recent statements underscore an intention to act at their final meeting of the year, in December.