US Federal Reserve raised interest rate for the first time in a year

Almaty. December 15. Silkroadnews – The US Federal Reserve System (FRS) has raised its benchmark interest rate by 25 basis points to 0.5-0.75%, TASS reports.

“In view of realized and expected labor market conditions and inflation, the Committee decided to raise the target range for the federal funds rate to 1/2 to 3/4 percent. The stance of monetary policy remains accommodative, thereby supporting some further strengthening in labor market conditions and a return to 2 percent inflation”, the press release says.

This is the first time FRS implements interest rate increase this year. In December 2015 the US regulator raised the interest rate by 25 bp – from 0-0.25% to 0.25-0.5% per annum. Prior to that the base discount rate was raised only in June 2006, and from December 2008 to December 2015 it stood at near-zero level within the range of 0-0.25%.

According to the documents, the Fed predicts three further rates increase in 2017.