Federal reserve increases interest rate in December by 0.25%. Fed in his statements has said that it has increased its interest rate by 25 basis points and plans to increase rate by 3 times next year. The hike has come as predicted by the analysts. This increases will increase the federal funds rate to a target range of between 0.5 and 0.75 percent from the current range of 0.25-0.5 percent.
America’s central bank was widely expected to raise interest rates today on account of improving macro-economic conditions. Federal Reserve increases interest rate as economic parameters remains in line with its expectations.