Federal Reserve Raises Interest Rate, Signals More to Come

The Federal Reserve announced that the Board of Governors approved a quarter of a percent hike to the federal funds rate, creating a range of 1.75 percent to 2 percent and, in a related action, voted to unanimously approve a quarter percentage point increase in the primary credit rate to 2.5 percent, effective June 14, 2018.  The Fed has also indicated that two more rate hikes could be approved through the end of the year.  The Board also voted unanimously to raise the interest rate paid on required and excess reserve balances to 1.95 percent, effective June 14, 2018.