FED hikes rate by quarter

Washington June 15: A shocking news from America. The Federal Reserve of the country has raised the short-term interest rates by a quarter point on Wednesday. It is the 3rd hike in interest rates by the bank since last December.

Federal bank chairman Janet Yellen said that "American economy is in a rise ". The bank has also upgraded its forecast of growth of the economy for the next financial year.

Bank said that its interest rate will be in a range between 1% and 1.25%.
The Federal Reserve is planning to sell off the assets that it had bought to boost the economy during the financial crisis.

However experts say that the bank has taken this decision because the US has added jobs in last couple months and the unemployment rate has decreased to 4.3 % in MAY 2017. They have also said that rise of interest rate will have a little impact on Indian economy.

Finally, investors feel that rise in interest rate is a measure of strong steps taken by USA President Trump to boost the economy .