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Federal Reserve Ups Interest Rate, Says Economy Is Growing Steadily

The Fed raised rates to a range of 1.25 to 1.5 percent.

Federal Reserve Ups Interest Rate, Says Economy Is Growing Steadily
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The Federal Reserve announced it will raise interest rates by a quarter of a percentage point, saying "economic activity has been rising at a solid rate."

Janet Yellen Will Exit The Fed Entirely Next Year
Janet Yellen Will Exit The Fed Entirely Next Year

Janet Yellen Will Exit The Fed Entirely Next Year

The Federal Reserve chair said she'd leave the agency next year after President Donald Trump nominated Jerome Powell to replace her.

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The target range for federal funds rate is now 1.25-1.5 percent. The announcement said unemployment was going down, spending was going up and inflation had declined.

The Fed also forecasted the economy will grow by 2.5 percent next year, up from a previous forecast of 2.1 percent in September.

This raise marks the third this year and the fifth since the financial crisis in 2008.