Fed Raises Rates, Maintains Forecast for One More Hike
- Central bank maintained outlook for one more increase in 2017
- Policy makers set out details for shrinking the balance sheet
Fed Chair Janet Yellen's Press Conference in 2 minutes
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Federal Reserve officials forged ahead with an interest-rate increase and additional plans to tighten monetary policy despite growing concerns over weak inflation.
Policy makers agreed to raise their benchmark lending rate for the third time in six months, maintained their outlook for one more hike in 2017 and set out some details for how they intend to shrink their $4.5 trillion balance sheet this year. In a press conference after the decision was announced, Fed Chair Janet Yellen said the unwinding plan could be put into effect “relatively soon” if the economy evolves as the central bank expects.