The Federal Reserve Announces Interest Rate Increase

The Federal Reserve announced today that it will raise the federal funds rate .25 percent to a range between 2.25 percent and 2.50 percent. This is the ninth time the Fed has raised short-term interest rates since December 2015 and the fourth time this year. The big news, however, is that Fed projections signal only two quarter-point rate increases in 2019 as opposed to earlier forecasts of three rate hikes. This rate-path adjustment arrives amidst strong volatility in equity markets and growing fears over an economic slowdown.