The U.S. central bank will raise the target range for the federal funds rate to 0.75 to 1 percent. This is the third time the Fed has raised interest rates in the last decade; the last time the U.S. central bank raised interest rates was in December 2016. , economists and market participants were looking for signs pointing to whether Fed policy makers are ready to move away from historically low interest rates, which have been in place since 2007 as part of the post recovery recession effort.
The Fed’s updated projections can be read as a signal that there’s going to be more than one rate hike in 2017: The committee members’ prediction that federal funds rate will be 1.4 by the end of 2017, which would mean two quarter-point increase this year.
For users of credit cards, home equity lines of credit and other variable-interest debt, rates will rise by roughly the same amount as the Fed hike , said Greg McBride, Bankrate’s chief financial analyst. That’s because those rates are based in part on banks’ prime rate, which moves in tandem with the Fed.