Fed hikes rates by 25bps - indicates two more rises this year

At the two-day meeting, the Federal Open Markets Committee (FOMC) voted to hike the Federal Funds target range to 1.75%-2% from the 1.5%-1.75% band, pointing to a stronger economic outlook. The FOMC said in its statement the labour outlook has continued "to stengthen" along with economic activity improving at a "solid rate" and the unemployment rate declining. It said: "The stance of monetary policy remains accommodative, thereby supporting strong labor market conditions and a sustained return to 2% inflation. "The committee expects that further gradual increases in the target rang...