The move by the Federal Reserve puts the short-term rate at 1.5 percent.
Federal Reserve Board graphic
As expected, Federal Reserve policymakers raise a key short-term interest rate by one quarter of a percentage point. The Fed Funds rate stands now at 1.5 percent.
In a statement, the Fed said that while growth and job creation have slowed, "the economy nevertheless appears poised to resume a stronger pace of expansion going forward."
Fed policymakers reiterated their belief that with inflation still relatively low, interest rates can be raised "at a pace that is likely to be measured." NPR's Jim Zarroli reports.