The Federal Reserve ended 2017 with a rate hike, marking the third increase for the year.
The central bank’s policy making Federal Open Market Committee (FOMC) acknowledged improvements in the economy, and noted that the recent “hurricane-related disruptions and rebuilding” did not significantly alter the general state of the national economic health.
“In view of realized and expected labor market conditions and inflation, the Committee decided to raise the target range for the federal funds rate to 1-1/4 to 1‑1/2 percent,” the Fed announced in a statement. “The stance of monetary policy remains accommodative, thereby supporting strong labor market conditions and a sustained return to two percent inflation.”
Only two FOMC members, Charles L. Evans of the Chicago Fed and Neel Kashkari of the Minneapolis Fed, voted against the rate hike. Among the seven FOMC members voting in favor were outgoing Fed Chairman Janet Yellen and her presumptive successor, Jerome Powell.