The Federal Reserve lifted interest rates by a quarter point and signalled that further increases are likely in 2018 as policymakers gave a bullish assessment of the US economy amid accelerating growth and rapid job creation.
The Federal Open Market Committee raised the target range for the federal funds rate to 1.75 to 2 per cent, in the seventh increase of the current cycle and the second this year. Interest-rate forecasts released by Fed policymakers pointed to a total of four rate rises in 2018, followed by another three in 2019.
In a statement, the central bank dropped previous crisis-era assurances that it will keep rates below their longer-run norms.