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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.
One of the mantras adopted by Chair Janet Yellen this year has been that rate rises will be gradual. The pace of increases-when they begin-is expected to be less than half the tempo of the Fedâs last round of rate rises, which started in 2004.ne of the mantras adopted by Chair Janet Yellen this year has been that rate rises will be gradual. The pace of increases-when they begin-is expected to be less than half the tempo of the Fedâs last round of rate rises, which started in 2004.