Interest rates are going up.
The Federal Reserve on Wednesday raised its benchmark interest rate by a quarter of a percentage point. The decision is a response to an improving economy, low unemployment and rising wages.
The central bank lifted the federal funds rate to a range of 1.5% to 1.75%. The fed funds rate helps determine rates for mortgages, credit cards and other consumer borrowing.
It’s the first major decision for the Fed under Chairman Jerome Powell, who began a four-year term last month.
The Fed kept interest rates near zero for seven years after the financial crisis. It began slowly raising rates in December 2015. The Fed has now raised rates six times since the crisis-era lows.
