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US Federal Reserve has raised its benchmark interest rate

The US Federal Reserve has increased its benchmark interest rate by 0.25% for just the third time in a decade.
The central bank voted to increase its key rate goal to a range of 0.75% to 1%.
The Fed had been expected to raise rates after having a powerful February jobs report, solid pay gains, rising inflation plus a drop in the unemployment rate to 4.7%.
Federal Reserve policymakers are expected to increase a total of three times this season to speeds.
The Fed aims to help keep the cost of financing between banks within a predetermined group, which it does by selling or buying financial assets.
That band is being raised by it by a quarter of a percent.
Fed Chair Janet Yellen said the committee judged that a “modest increase” in the rate is proper “in light of the economy’s sound improvement.”
“Even after this increase, monetary policy remains accommodative, hence supporting some additional strengthening in the job market, as well as a continual yield to 2% inflation,” she added.
The choice was approved with a 9-1 vote.
The US dollar fell about 0.6% against the euro and 0.8% against the pound.
The US economy may turn out to be stronger than anticipated, leaving the Fed playing catch-up, he explained.
“Meanwhile, they’re confronting increasingly shrill calls because of their independence to be curtailed. It’s hard to envision the remainder of the hiking cycle will go off with no hitch,” he added.

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