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| Version 0 | Version 1 |
|---|---|
| US key interest rate highest since 2008 | US key interest rate highest since 2008 |
| (35 minutes later) | |
| The US Federal Reserve has said it would raise its key interest rate by 0.25%, the second rise this year. | The US Federal Reserve has said it would raise its key interest rate by 0.25%, the second rise this year. |
| The central bank voted to raise its key rate target to a range of 1% to 1.25%. | The central bank voted to raise its key rate target to a range of 1% to 1.25%. |
| That's the highest level since 2008, when policymakers cut rates to encourage borrowing and spending after the financial crisis. | |
| The bank also said it would begin cutting its bond holdings and other securities this year. | |
| It cited continued US economic growth and job market strength as reasons for raising rates. | |
| The rise was widely anticipated after a low unemployment rate, but other economic indicators, including inflation, have been weaker. | |
| Data on Wednesday showed US consumer prices unexpectedly fell in May and retail sales recorded their biggest drop in 16 months. | |
| This has raised questions about the bank's future course. | |
| Federal Reserve policymakers have been grappling with when and how to alter the policies put in place after the 2008 financial crisis, when they lowered rates and acquired a large portfolio of US Treasuries and mortgage-backed securities. | |
| The Fed raised interest rates for the first time since the crisis in December 2015. Policymakers acted in December 2016 and again in March. | |
| Policymakers have said they expect to raise rates at least three times this year. | |
| The moves depend on the strength of the economy, which has been mixed. | |
| On Wednesday, the US Labor Department reported that prices for goods excluding food and energy increased by 1.7% from May 2016, slowing steadily from earlier in the year. | |
| That fell short of the Federal Reserve's target of 2%. |