The Federal Reserve has raised its benchmark interest rate for the second time in three months and signaled that further hikes this year will be gradual. The move reflects a consistently solid US economy and will likely mean higher rates on some consumer and business loans. The Fed’s key short-term rate is rising by a quarter-point to a still-low range of 0.75 percent to 1 percent. The central bank said in a statement that a strengthening job market and rising prices had moved it closer to its targets for employment and inflation. Many economists think the next hike will occur no earlier than June, given that the Fed likely wants time to assess the likelihood that Congress will pass Trump’s ambitious program of tax cuts, deregulation and increased spending on infrastructure.

(Times of India)