WASHINGTON — The Federal Open Market Committee of the Federal Reserve System has raised a key interest rate amid what it characterizes as strengthening U.S. economic activity.
On Sept. 26, the FOMC voted to raise the federal funds rate — the rate at which banks lend to other banks — to between 2 percent and 2.25 percent. This marks the eighth time the Fed has raised the federal funds rate since the recession of 2008.
"The labor market has continued to strengthen and … economic activity has been rising at a strong rate," the FOMC said in its statement.
"Job gains have been strong on average in recent months, and the unemployment rate has stayed low," the committee said. "Household spending and business fixed investment have grown strongly."
Inflation remains over 2 percent on a 12-month basis, the FOMC said, and indicators of longer-term inflation expectations are little changed.
The FOMC meets in December when it again is expected to raise rates.