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Fed boosts interest rates, mirroring confidence in economy

Federal Reserve Chair Janet Yellen.
Federal Reserve Chair Janet Yellen. Photo: Jacquelyn Martin / AP

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.