Interest rates are on a slow rise in a sign of confidence that the U.S. economy is growing and employment rates are improving.
The Federal Reserve raised short-term interest rates by a quarter point on Wednesday, the third hike since December. Key rates are now between 1% and 1.25%, still comparatively low, and interest rates for mortgages are not expected to rise.
“It reflects the progress the economy has made,” Fed chair Janet Yellen said at a press conference.
Interest rates for mortgages are not expected to rise.
The Fed also said it is planning to start gradually selling off some of the assets it bought during the last financial crisis to boost the economy.
Fed officials also cut their forecast for inflation to 1.6% from an estimate of 1.9% made earlier in the year.