The Federal Reserve is on the verge of raising interest rates again for the first time since 2007, despite warnings from central bankers from around the world.
The central bank, which keeps the benchmark overnight rate at a record low of 0.25%, is set to lift the benchmark interest rate by 0.75 percentage points in the next few months, the Federal Reserve said Thursday in a statement.
The rate move comes on the heels of the Fed’s most recent rate hike of 1.75% in October.
But the Fed did not specify how long the hike would last.
The central bank is currently reducing its target for inflation to 1.5% from the Fed estimate of 2% over the next three years.
The Fed will likely announce another rate hike in November or December.
But investors have largely kept their eyes on the economic outlook.
The Dow Jones Industrial Average is now up nearly 200 points, or 0.6%, on Thursday.
The S&P 500 is up nearly 80 points, 0.9%, on the year.