The Federal Reserve raised a main interest rate from 1.5 percent to 1.75 percent March 21, The Washington Post reports.
Here are five things to know about the hike.
1. The increase — marking Jerome Powell's first major move as chairman — puts the interest rate at the highest level since 2008. The increase comes as stock markets hover at near record highs and the U.S. economy grows.
2. The Federal Reserve also hiked its growth forecast for this year and 2019 to 2.7 percent and 2.4 percent, respectively. That's up from federal officials' previous estimate completed before new tax legislation was enacted, The Washington Post reports.
3. While the Federal Reserve plans to increase interest rates three times this year, it may consider adding a fourth increase. The hikes are a regression from stringent measures put in place during and after the great recession.
4. Although the rates may mean borrowers will face pricier loan terms, those focused on saving will likely view the Fed's decision positively.
5. In addition to interest rate changes, the Fed projected unemployment will shrink to 3.8 percent this year and to 3.6 percent next year. If 2019 does see a 3.6 percent unemployment rate, it will be the lowest rate since 1969, the report states.
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