'The US economy is firing on all cylinders': The Fed hikes rates, indicates two more this year

By 25 basis points

The Federal Reserve hiked rates by 25 basis points on Wednesday and indicated it would raise rates two more times this year, once more than market expectations before the announcement.

At the two-day meeting, the Federal Open Markets Committee (FOMC) voted to hike the Federal Funds target range to 1.75%-2% from the 1.5%-1.75% band, pointing to a stronger economic outlook. The FOMC said in its statement the labour outlook has continued "to stengthen" along with economic activity improving at a "solid rate" and the unemployment rate declining. It said: "The stance of monetary policy remains accommodative, thereby supporting strong labor market conditions and a sustained return to 2% inflation. "The committee expects that further gradual increases in the target rang...