Watch the Federal Reserve announcement on the first rate hike in nearly 10 years
The Federal Reserve on Wednesday raised its benchmark short-term interest rate for the first time in 9 ½ years, providing a long-awaited vote of confidence for the recovery from the Great Recession by beginning to remove the last of the central bank’s extraordinary steps to boost economic growth.
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Seven years to the day after lowering the rate to near zero, members of the policymaking Federal Open Market Committee edged it up 0.25 percentage point.
Federal Reserve Chairwoman Janet Yellen explained the decision in a news conference earlier today. Watch her full remarks below.
Almost everyone agrees that the Federal Reserve's extraordinary action to cut interest rates to near zero in the depths of the Great Recession helped save the country from a deeper downturn — or even another depression.
Federal Reserve policymakers are expected to end months of speculation Wednesday and raise a key interest rate for the first time in nearly a decade.