US Federal Reserves raises interest rates by 0.25 percent

The US Federal Reserve raised its interest rates by 0(point)25 percent, the third rate rise this year. Policymakers at the US central bank said, the move, which was widely expected, underscores solid gains in the US economy. Officials also boosted their economic forecasts, projecting 2.5 percent growth in GDP in 2017 and 2018.

The Fed said it expects to make three further increases in rates next year, unchanged from its previous forecast.



The Fed is targeting a range of 1.25 percent to 1.5 percent for its benchmark rate. Officials also said they believe interest rates are on track to exceed 2% in 2018. 

The decision to raise rates came at the conclusion of the Federal Reserve's two-day meeting in Washington. The move marks a further retreat from the ultra-low rates that were put in place during the financial crisis to boost economic activity.