The Federal Reserve decides to increase interest rates even more than it previously anticipated
Falling unemployment rates and rapid inflation led the Federal Reserve on Wednesday to raise interest rates for the second time this year, reports Bloomberg.
Officials indicated that there would likely be two more increases in 2018, "consistent with sustained expansion of economic activity, strong labor market conditions, and inflation." The quarter-point hike brought the rate to 2 percent.
The decision came with a statement that changed course from a May increase, when the Fed said there would be only three total increases in 2018 and forecasted that things would remain steady "for some time." Officials still predicted that inflation wouldn't change longer-term expectations, citing solidly increasing economic activity that they think will keep the balance. Read more at Bloomberg.
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Summer Meza has worked at The Week since 2018, serving as a staff writer, a news writer and currently the deputy editor. As a proud news generalist, she edits everything from political punditry and science news to personal finance advice and film reviews. Summer has previously written for Newsweek and the Seattle Post-Intelligencer, covering national politics, transportation and the cannabis industry.
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