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    Federal Reserve hikes key interest rate for second time in 2018

    FILE- In this March 21, 2018, file photo, Federal Reserve Chairman Jerome Powell speaks following the Federal Open Market Committee meeting in Washington. Investors are eagerly awaiting the updated economic forecasts the Fed will issue when its meeting ends Wednesday, June 13. (AP Photo/Carolyn Kaster, File)
    Carolyn Kaster/AP/File
    Federal Reserve Chairman Jerome Powell in March.

    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.

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    Fed Chair Jerome Powell will discuss the decision at a 2:30 p.m. Eastern time news conference.