Fed hikes short-term interest rates again
Washington: The US Federal Reserve has raised short-term interest rates as of Wednesday, marking the sixth increase since June. The central bank has increased the federal funds rate by 0.25 per cent to 2.5 per cent. The federal funds rate is charged on overnight loans between banks.

The US central bank has also indicated that it would keep increasing interest rates in the coming months. Policymakers continue to maintain a positive outlook on the US economy.

Since the Fed began its policy to tighten interest rates eight months ago, the overnight lending rates have more than doubled from their near-record low of 1 per cent.

Analysts say the rate hike was in line with market expectations. The blue-chip Dow Jones industrial average was up 44 points or 0.4 per cent to close at 10,596. Technology bellwether Nasdaq rose by 6 points or 0.3 per cent to 2,075. The S&P500 was up 3.78 points or 0.3 per cent at 1,193.
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