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Fed Raises Rates, Eyes Three 2018 Hikes as Yellen Era Nears End

  • Central bank expects labor market to ‘remain strong’
  • Kashkari, Evans dissent, preferring to leave rates unchanged
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Bloomberg’s Mike McKee reports on the Fed’s rate hike.(Source: Bloomberg)
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Federal Reserve officials followed through on an expected interest-rate increase and raised their forecast for economic growth in 2018, even as they stuck with a projection for three hikes in the coming year.

“This change highlights that the committee expects the labor market to remain strong, with sustained job creation, ample opportunities for workers and rising wages,” Chair Janet Yellen told reporters Wednesday in Washington following the decision. In her final scheduled press conference, Yellen noted that her nominated successor, Jerome Powell, has been part of the consensus shaping the Fed’s gradual rate-hike strategy.