Fed raises US interest rates, sees at least 3 more years of growth
The US Federal Reserve has raised interest rates and left intact its plans to steadily tighten monetary policy, with a forecast that the US economy would enjoy at least three more years of growth.
In a statement marking the end of the era of "accommodative" monetary policy, Fed policymakers lifted the benchmark overnight lending rate by a quarter of a percentage point to a range of 2 to 2.25 per cent.
The US central bank foresees another rate hike in December, three more next year, and one in 2020. That would put the benchmark overnight lending rate at 3.4 per cent, roughly half a percentage point above the Fed's estimated "neutral" rate of interest, at which rates neither stimulate nor restrict the economy.
That tight policy stance is projected to stay level through 2021, the timeframe of the Fed's latest economic projections.
Wednesday's rate increase once again drew criticism from President Donald Trump, who has complained that the Fed's actions are countering his efforts to boost the economy.
"We're doing great as a country. Unfortunately they just raised interest rates because we are doing so well. I'm not happy about that," Mr Trump told a press conference on the sidelines of the United Nations General Assembly in New York.
"I'd rather pay down debt or do other things, create more jobs. So I'm worried about the fact that they seem to like raising interest rates." - REUTERS
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