Fed boosts interest rates, mirroring confidence in economy
The Federal Reserve has increased interest rates to 1.25-1.5%, the third boost this year, NPR reports.
Why it matters: The increase indicates that there is confidence in the economy, per NPR. Fed officials are suggesting that the central bank is working to avoid rapid inflation in coming months (as a result of the GOP tax overhaul) by quickening the pace of rate increases.
- Per CNBC, the Federal Open Market Commitee (FOMC) statement released on Wednesday showed more confidence in in the economy bouncing back after the major hurricanes this year.
- The October statement said: "Hurricane-related disruptions and rebuilding will continue to affect economic activity, employment, and inflation in the near term, but past experience suggests that the storms are unlikely to materially alter the course of the national economy over the medium term."
- The new statement says: "Hurricane-related disruptions and rebuilding have affected economic activity, employment, and inflation in recent months but have not materially altered the outlook for the national economy."