US Fed hikes key interest rate; says economic outlook stronger
Context
The Federal Reserve on Thursday increased the benchmark interest rate a quarter point to a target range of 1.5 % to 1.75 %, citing a stronger US economic outlook in recent months
Basis of hike
- Fiscal policy has become more simulative
- ongoing job gains are boosting incomes and confidence
- foreign growth is on a firm trajectory
- Inflation below 2% target
Also, overall financial conditions remain accommodating
