Fed Raises Interest Rates for the First Time Since Recession

The Federal Reserve announced Wednesday it will raise its benchmark federal funds rate from near zero to between 0.25% and 0.5% and emphasized a plan to increase it gradually over the next three years. The increase was the first since the 2008 financial crisis. Officials expect increases to continue at about 1% a year for the next three years.

Fed Chairwoman Janet Yellen said the decision “recognizes the considerable progress that has been made toward restoring jobs, raising incomes, and easing the economic hardships that have been endured by millions of ordinary Americans.” The news had no immediate negative effects on financial markets, with the S&P 500 closing up 1.5%. 

Read more at The New York Times