The Federal Reserve raised the federal funds rate by 25 basis points for the third time this year.

　　On December 13th, US Federal Reserve Chairman Yellen spoke at a press conference in Washington. The Federal Reserve announced on the 13th that it would raise the federal funds rate by 25 basis points, which is the third time this year. Xinhua News Agency reporter Yin Bogu photo

　　Xinhua News Agency, Washington, December 13th (Reporter Gao Panjiang Yujuan) On the 13th, the Federal Reserve announced that it would raise the target range of the federal funds rate by 25 basis points to 1.25% to 1.5%, which is the third rate hike this year, in line with market expectations.

　　The Federal Reserve issued a statement after the monetary policy meeting on the same day, saying that the information since November shows that the US economy has maintained steady growth, the job market has continued to be strong, and the unemployment rate has further declined; Household consumption maintained a moderate growth, and investment in fixed assets of enterprises rebounded in recent quarters. However, since the beginning of this year, the overall inflation rate in the United States has declined, which is still lower than the Fed’s target of 2%.

　　The statement said that hurricanes and post-disaster reconstruction activities that hit the Gulf Coast in the southern United States have had an impact on the economy, employment and inflation in recent months, but they have not substantially changed the overall economic growth prospects of the United States. The Fed still expects the US economy to maintain moderate expansion, the job market to remain strong, and the inflation level will stabilize near the 2% target in the medium term.

　　The quarterly economic forecast released by the Federal Reserve on the same day shows that the US economy is expected to grow by 2.5% in 2017, higher than the forecast of 2.4% in September; By the end of 2017, the unemployment rate in the United States is expected to be 4.1%, which is lower than the 4.3% predicted in September. The Fed also expects the US economy to grow by 2.5% in 2018, higher than the 2.1% predicted in September; By the end of 2018, the unemployment rate in the United States is expected to be 3.9%, lower than the forecast of 4.1% in September.

　　The interest rate forecast released by the Federal Reserve on the same day shows that the median federal funds rate will rise to 2.1% by the end of 2018. This means that the Fed expects to raise interest rates three times in 2018, which is consistent with the forecast in September.

　　Federal Reserve Chairman Yellen said at the press conference that the US economic growth will continue to support the Fed to raise interest rates gradually. This is Yellen’s last press conference as chairman of the Federal Reserve. In early February 2018, the current Fed governor Powell will succeed Yellen as the next Fed chairman.

　　Evans, president of the Chicago Federal Reserve Bank, and Kaska, president of the Minneapolis Federal Reserve Bank, voted against it at the monetary policy meeting that day, and they tended to keep the federal funds rate unchanged.

　　In December 2015, the Federal Reserve started raising interest rates for the first time since the 2008 financial crisis, and began a slow process of monetary policy normalization. Since then, the Federal Reserve raised interest rates three times in December 2016, March and June this year, and began to reduce its balance sheet in October this year.