US Fed Raises Interest Rate by 0.25 Percent

On Wednesday, the US Federal Reserve raised interest rates for the second time in three months

Washington, 20 Ramadan 1438/15 June 2017 (MINA) – The Federal Reserve raised on Wednesday US interest rate by 0.25 percent for the second time this year.

The hike takes the interest rate up to a range of 1 to 1.25 percent, from the current 0.91 percent, KUNA reported, citing a statement from the central bank.

The Fed said it “continues to expect that, with gradual adjustments in the stance of monetary policy, economic activity will expand at a moderate pace, and labor market conditions will strengthen somewhat further.”

Inflation, meanwhile, is expected to remain below 2 percent in the near term but to stabilize around the bank’s 2 percent objective over the medium term, the statement explained.

The Fed added that it “expects that economic conditions will evolve in a manner that will warrant gradual increases in the federal funds rate,” but that “the actual path of the federal funds rate will depend on the economic outlook as informed by incoming data.” (T/RS5/RS1)

Mi’raj Islamic News Agency (MINA)