Fed Raises Benchmark Rate as Inflation Approaches 2% Target

The Federal Reserve raised its benchmark lending rate a quarter point and continued to project two more increases this year, signaling more vigilance as inflation approaches its target.

“In view of realized and expected labor market conditions and inflation, the committee decided to raise the target range for the federal funds rate,” the Federal Open Market Committee said in its statement Wednesday. “Near-term risks to the economic outlook appear roughly balanced.”

Investors had almost fully expected the increase to a range of 0.75 percent to 1 percent following unusually clear signals from policy makers including Chair Janet Yellen, who began a press conference at 2:30 p.m. in Washington.

Read more at Bloomberg News: Fed Raises Benchmark Rate as Inflation Approaches 2% Target