On Wednesday, the Federal Reserve unveiled its plan to increase the federal funds rate to 0.25% to 0.5%. According to the Wall Street Journal, the Fed last increased interest rates in 2018.
In a statement, the Fed said the increase is part of its goal to “achieve maximum employment and inflation at the rate of 2% over the longer run.” The Fed also said that along with the interest rate increase, it “expects to begin reducing its holdings of treasury securities and agency debt and agency mortgage-backed securities at a coming meeting.”
According to the Wall Street Journal, this will not be the last increase of this year by a long shot, reporting that the Fed has “penciled in a series of further increases this year.”
