STREAMING NOW: Watch Now

Fed boosts key interest rate for 4th time this year

The increase will mean higher borrowing costs for many consumers and businesses.

Posted: Dec 19, 2018 1:09 PM

WASHINGTON (AP) - The Federal Reserve is raising its key interest rate for the fourth time this year to reflect the U.S. economy's continued strength but signaling that it expects to slow hikes next year.

The quarter-point hike, to a range of 2.25 percent to 2.5 percent, lifts the Fed's benchmark rate to its highest point since 2008. The increase will mean higher borrowing costs for many consumers and businesses.

The Fed's policy statement says "some" further gradual rate increases are likely. But its updated forecast projects just two rate hikes next year, down from the three that the Fed had predicted in September. In another sign of fewer rate hikes in the future, the new forecast trims the long-run level for the Fed's benchmark rate to 2.8 percent, down from 3 percent.

Article Comments

Huntsville
Broken Clouds
88° wxIcon
Hi: 88° Lo: 64°
Feels Like: 92°
Florence
Broken Clouds
87° wxIcon
Hi: 86° Lo: 64°
Feels Like: 91°
Fayetteville
Broken Clouds
84° wxIcon
Hi: 86° Lo: 60°
Feels Like: 86°
Decatur
Scattered Clouds
89° wxIcon
Hi: 89° Lo: 64°
Feels Like: 94°
Scottsboro
Clear
88° wxIcon
Hi: 89° Lo: 65°
Feels Like: 91°
WAAY Radar
WAAY WAAY-TV Cam
WAAY Temperatures

Community Events