WASHINGTON – The U.S. Federal Reserve on Tuesday raised interest rates for the third time this year by a quarter of a percentage point and said the economy was regaining some momentum after a slow period.
The widely expected and unanimous decision by the policy-setting Federal Open Market Committee moves the benchmark federal funds rate — which influences credit costs throughout the economy — to 1.75 percent.
The Fed lifted rates by matching amounts in June and at its last policy session on Aug. 10, spelling an end to a lengthy period of super-low rates.
“After moderating earlier this year partly in response to the substantial rise in energy prices, output growth appears to have regained some traction, and labor market conditions have improved modestly,” the Fed said in a statement outlining its rate decision, which also increased the largely symbolic discount rate to 2.75 percent.
The Fed also said inflation pressures and expectations had eased despite a rise in energy costs.
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