The US central bank kept its long-term growth forecast unchanged at 1.8 per cent.
The US Federal Reserve, on Wednesday, raised interest rates by 25 basis points.
It maintained its plans to steadily tighten monetary policy, and forecast that the US economy would witness at least three more years of growth. However, Fed Reserve kept its long-term growth forecast for US unchanged at 1.8 per cent.
However, it raised its expectations slightly in the near-term, forecasting 3.1 per cent growth in 2018 (up 0.3 percentage points) and 2.5 per cent (up 0.1 points) in the following year.
"On a 12-month basis, both overall inflation and inflation for items other than food and energy remain near 2 percent. Indicators of longer-term inflation expectations are little changed, on balance," it said in a press release.
The US central bank marked the end of the era of ”accommodative” monetary policy, and raised the benchmark overnight lending rate by a quarter of a percentage point to a range of 2.00 per cent to 2.25 per cent.
The bank says it might hike rate in December, three more next year, and one increase in 2020.
The Fed said it has kept its eye on the pace of economic growth and the possibility of inflation, and will weigh the possible effects of trade turmoil with China and other countries, which could slow global growth.
Source: Media reports