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Fed Raises Rates After Seven Years Near Zero, Expects ‘Gradual’ Tightening Path

Wall Street Journal (12/17/15) Jon Hilsenrath; Ben Leubsdorf

The U.S. Federal Reserve yesterday announced it will increase interest rates. Fed officials plan to increase the benchmark federal-funds rate from near zero to between 0.25% and 0.5%, and will adjust their strategy as they see how the economy performs. New projections show officials expect the fed-funds rate to climb to 1.375% by the end of 2016, to 2.375% by the end of 2017, and to 3.25% in three years.