The Federal Reserve raised interest rates again on June 14. This is the second time in three months.
The basis is continued U.S. economic growth and job market strength.
It also announced it would begin cutting its holdings of bonds and other securities this year.
The decision lifted the Fed’s benchmark lending rate to a target range of 1.00 percent to 1.25 percent.
In its statement following a two-day meeting, the Fed’s policy-setting committee indicated the economy had been expanding moderately, the labor market continued to strengthen, and a recent softening in inflation was seen as transitory.
The Fed gave a clear outline on its plan to reduce its $4.2 trillion portfolio of Treasury bonds and mortgage-backed securities, most of which were purchased in the wake of the 2007-2009 financial crisis and recession.
