U.S. Federal Reserve raises interest rates by 0.25%p, forecasts optimistic outlook for U.S. economy

In a highly-anticipated move,... the U.S. Federal Reserve has raised interest rates for the third time this year. It also raised this year's economic outlook for the United States.Kim Hyo-sun tells us more. The Fed raised interest rates by a quarter point on Wednesday as widely anticipated, and indicated it plans to raise rates again in December. The Federal Reserve increased the target range for its benchmark interest rate to two to two-point-two-five percent,... setting the rate at its highest level since April 2008. All nine members of the Federal Open Market Committee voted in favor of the decision. "Today the committee raised the target range for the federal funds rate by a quarter percentage point bringing it to two to two and a quarter percent. This action reflects the strength we see in the economy and is one more step in the process that we began almost three years ago of gradually returning interest rates to more normal levels." This is the eighth increase since the Fed began normalizing policy in December 2015,... and the third rate hike in 2018. Along with the rate increase, the Fed also expressed a more optimistic outlook for the U.S. economy.It forecasts the economy will grow at a faster-than-expected three-point-one percent this year,... an upward revision from the two-point-eight percent projection back in June,... adding it will continue to expand moderately for at least three more years. As the Fed also hinted on raising rates again in December,... global market analysts are eyeing the speed of the rate hike. With the latest increase,... the rate gap between South Korea and the U.S. widens to zero-point-seven-five percentage point,... possibly prompting foreign investors to move capital out of South Korea.Kim Hyo-sun, Arirang News.