The Federal Reserve raised its benchmark interest rate target to a range of 0.25 to 0.50 percent on Wednesday, the first hike since 2018.
The move was widely expected after several Fed officials indicated that the Fed would hike its target at the conclusion of the March meeting at the Federal Open Market Committee.
“Inflation remains elevated, reflecting supply and demand imbalances related to the pandemic, higher energy prices, and broader price pressures,” the FOMC said in a statement.
Projections released by the Fed on Monday showed that Fed officials expect to raise rates by a quarter of a point at each of the Fed’s six remaining meetings this year, bringing the target to around 1.9 percent. That is up a full percentage point from the projections released in December.