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Powell Lauds Economy as Fed Nudges Up Interest-Rate Hike Path

Craig Torres, Christopher Condon, Jeanna Smialek
Powell Lauds Economy as Fed Nudges Up Interest-Rate Hike Path

Federal Reserve officials raised interest rates for the second time this year and upgraded their forecast to four total increases in 2018, as unemployment falls and inflation overshoots their target faster than previously projected. The so-called “dot plot” released Wednesday showed eight Fed policy makers expected four or more quarter-point rate increases for the full year, compared with seven officials during the previous forecast round in March. The median estimate implied three increases in 2019 to put the rate above the level where officials see policy neither stimulating nor restraining the economy.