Funds Rate: Market Committee and Progress Economy

funds rate: CONFIDENCE IN ECONOMY The moderate economic expansion, continued strengthening of labor market and the improvement in inflation condition supported the central bank to raise interest rate after nearly a one-year pause, according to the statement, according to Global Times China. Our decision to raise rates is - certainly be understood as a reflection of the confidence we have in the progress the economy has made and our judgment that that progress will continue and the economy has proven to be remarkably resilient, said Fed chair Janet Yellen at a press conference on Wednesday. In view of realized and expected labor market conditions and inflation, the Federal Open Market Committee decided to raise the target range for the federal funds rate to 1/2 to 3/4 percent said the Fed in a statement after concluding a two-day policy meeting. The US economy expanded at an annual rate of 3.2 percent in the third quarter of this year, higher than the second quarter growth of 1.4 percent, driven by strong consumer spending; the job market continued strengthening and the unemployment rate fell to 4.6 percent in November, the lowest level since 2007; and the inflation has increased since earlier this year, with core inflation rate rising to 1.7 percent in October. In December last year, the US central bank increased the interest rate for the first time in nearly a decade. According to economic projections released on Wednesday, Fed officials expected the US economy to grow 1.9 percent this year and 2.1 percent next year, both up one percentage point from their September s forecasts. (news.financializer.com). As reported in the news.