14 Dec 2016- The Federal Reserve increased its key interest rate by 0.

25%

Fed officials raised its target for short-term interest rates by 0.25
percentage points to a range of 0.50% and 0.75%.
It was just the second time in a decade that the Fed has raised rates. The first
was in December 2015.

The Fed hinted that it could raise rates at a faster pace next year. Most Fed
officials now project three or more rate hikes in 2017. In September, Fed officials
predicted they would only raise rates once or twice next year.

The stock market fell after the decision was announced and Yellen's news
conference was underway. The Dow fell over 100 points.
Fed leaders originally projected raising rates four times in 2016. But after a slew
of setbacks, such as low oil prices earlier in the year, Fed officials only felt
comfortable with this one rate hike for the entire year.

The Fed released a new forecast Wednesday and it projects U.S.

economic growth this year to be 1.9% and next year to be 2.1%, both
slightly better than the Fed's previous projection in September.