The Federal Open Markets Committee voted to raise its benchmark interest rate 25 basis points to a range of 1%-to-1.25% at the conclusion of its two-day meeting, as virtually everyone was expecting.
It also released its latest Summary of Economic Projections.
The Fed now expects real GDP to grow 2.1% to 2.2% in 2017, compared to its previous outlook of 2.0% to 2.2%. Moreover, it expects the unemployment rate to fall to 4.2 to 4.3% this year, down from its previous projection of 4.5% to 4.6%.
As for inflation, the Fed says core PCE will come in at 1.6% to 1.7% in 2017, below prior expectations of 1.8% to 1.9%.
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