Chart of the Day: U.S. Central Bank Raises Benchmark Interest Rate

The U.S. central bank’s Federal Open Market Committee (FOMC) raised the federal funds rate by 25 basis points on Wednesday, moving the range of the rate to between 2.00 and 2.25 percent from 1.75 to 2.00 percent.

FOMC said in its statement that the hike in the benchmark interest rate is “in view of realized and expected labor market conditions and inflation.”

“The labor market has continued to strengthen and … economic activity has been rising at a strong rate,” the FOMC said.

The latest move is the third time the U.S. central bank has raised the key interest rate this year, and eighth time since 2015.

Contact reporter Charlotte Yang (yutingyang@caixin.com)