WASHINGTON — As widely anticipated, the Federal Reserve has raised its short-term federal fund rate — what banks charge each other— by 0.25 points to a range of 1.75 to 2 percent.
Fed officials voted unanimously on Wednesday to increase this key rate, which influences the flow and supply of money in the U.S. economy. The statement by Fed officials explaining the vote also hinted at a slightly faster pace for future rate increases. They removed previous language that the rate ‘‘is likely to remain, for some time, below levels that are expected to prevail in the longer run.’’
It’s the second rate increase of this year and Fed officials anticipate one or two additional hikes before 2019.
Fed Chair Jerome Powell will discuss the decision at a 2:30 p.m. Eastern time news conference.