Powell marks start of Fed tenure with rate rise; Warns asset prices are 'elevated' in some areas

First meeting for Powell

The Federal Reserve has voted to raise US interest rates by 25bps in Jerome Powell's first meeting as chairman since taking over from Janet Yellen, with a more hawkish path expected over the next couple of years.

At the two-day meeting, the Federal Open Markets Committee (FOMC) voted unanimously to raise the Federal Funds target range from 1.25%-1.5% to the 1.5%-1.75% band, in light of a strengthening economic outlook in recent months. In a statement, the FOMC said it expects that, with further gradual adjustments in the stance of monetary policy, economic activity will expand at a moderate pace in the medium term and labor market conditions will remain strong. Inflation on a 12-month basis is expected to move up in coming months and to stabilize around the Fed's 2% objective over the medium t...