Fed Raises Short-Term Interest Rate

The move by the Federal Reserve puts the short-term rate at 1.5 percent.

The move by the Federal Reserve puts the short-term rate at 1.5 percent. hide caption

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Federal Reserve Board graphic

Federal Reserve Board graphic hide caption

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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.

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