Interest rate goes to 2.25%.
With the U.S. economy continuing to surge, the U.S. Federal Open Market Committee has increased the benchmark interest rate from 2% to 2.25%.
In addition to the interest rate hike, the federal reserve upped their prediction for U.S. economic growth.
While they had earlier predicted growth of 2.8% for 2018, that has been revised to 3.1%.
They also raised the prediction for growth in 2019 from 2.4% to 2.5%.
Longer-term, U.S. growth is expected to be 2% in 2020, and 1.8% in 2021.
According to CNBC, “The committee still indicated another rate hike before the end of 2018 and likely three more in 2019. There’s one more increase factored in for 2020, bringing the median range to 3.4 percent where it is expected to stay through 2021 before settling to 3 percent over the longer run, an increase from June’s projection of 2.9 percent.”