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Fed raises rates for second time in three months

Charles Rex Arbogast/AP

The Federal Reserve's interest-rate committee decided to raise rates by 0.25%, with the fed funds rate now sitting between 0.75% and 1%. That's in line with what markets were expecting, and the S&P 500 rose 0.5% in the minutes following the decision.

Why it matters: The Fed is accelerating its pace of interest rate increases — today's decision marks just three months since the last hike, versus a 12 month interregnum before that. That the market is taking this rate hike in stride is a good sign for the economy and stocks, as higher interest rates cause investors to demand a higher return for their investments.