Fed Reserve raises key interest rate after 7 years of record low - Spokane, North Idaho News & Weather KHQ.com

Fed Reserve raises key interest rate after 7 years of record lows

Posted: Updated:

WASHINGTON (AP) - The Federal Reserve is raising interest rates after seven years of record lows. But it's signaling that further rate hikes will likely be made slowly as the economy strengthens further and muted inflation rises.
    
The Fed's move to lift its key rate by a quarter-point to a range of 0.25 percent to 0.5 percent ends an extraordinary seven-year period of near-zero rates that began at the depths of the 2008 financial crisis. Consumers and businesses could now face modestly higher rates on some loans.
    
The Fed's action reflects its belief that the economy has finally regained enough strength 6½ years after the Great Recession ended to withstand higher borrowing rates. But the statement announcing the rate hike said the committee expects "only gradual increases" in rates going forward.

(Copyright 2015 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

US Federal Reserve policymakers foresee slower rate rises:

WASHINGTON (AP) - Federal Reserve policymakers have slightly lowered their projections for short-term interest rates over the next three years, a sign that policymakers may move slowly after their first rate increase in seven years.
    
More Fed policymakers expect the short-term rate will be 1.38 percent or below at the end of 2016 than in previous projections in September. And they forecast the rate will be 2.38 percent at the end of 2017 and 3.25 percent at the end of 2018, both a quarter-point lower than in September.
    
Still, the Fed's forecasts for the U.S. economy and interest rates have proven too optimistic for most of the recovery from the Great Recession. A year ago, for example, policymakers projected the Fed's short-term rate would be much higher by the end of next year.

(Copyright 2015 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

  • Most Popular StoriesMost Popular StoriesMore>>

  • Disabled Spokane man mocked by Southwest Airlines employee on video

    Disabled Spokane man mocked by Southwest Airlines employee on video

    Friday, July 13 2018 9:45 PM EDT2018-07-14 01:45:30 GMT

    Spokane, Wash. 33-year-old Curtis Bonds was diagnosed with autism at the age of four and has recently started to become more independent. Bonds flew down to Los Angeles on Southwest Airlines for the Anime Expo. He was helping vendors set up for the event and says southwest airlines has been very accommodating to him in the past “I have been able to go up to the boarding attendant and say I have a disability I have a hard time standing in places for a long time and...

    >>

    Spokane, Wash. 33-year-old Curtis Bonds was diagnosed with autism at the age of four and has recently started to become more independent. Bonds flew down to Los Angeles on Southwest Airlines for the Anime Expo. He was helping vendors set up for the event and says southwest airlines has been very accommodating to him in the past “I have been able to go up to the boarding attendant and say I have a disability I have a hard time standing in places for a long time and...

    >>
  • Post Falls man in critical condition after falling off inner tube on Spokane River

    Post Falls man in critical condition after falling off inner tube on Spokane River

    Sunday, July 15 2018 12:08 AM EDT2018-07-15 04:08:05 GMT
    Backcountry vehicle travel restricted for trail grooming.Backcountry vehicle travel restricted for trail grooming.

    POST FALLS, Idaho - The Kootenai County Sheriff's Office says a 40-year-old Post Falls man is in critical condition after falling off his inner tube on the Spokane River Saturday evening.  Deputies responded to the Corbin Park area for a report of a possible drowning at around 6:00 p.m. Witnesses say the man had fallen off his inner tube and not resurfaced.  

    >>

    POST FALLS, Idaho - The Kootenai County Sheriff's Office says a 40-year-old Post Falls man is in critical condition after falling off his inner tube on the Spokane River Saturday evening.  Deputies responded to the Corbin Park area for a report of a possible drowning at around 6:00 p.m. Witnesses say the man had fallen off his inner tube and not resurfaced.  

    >>
  • Firefighter mauled by pit bull at scene of house fire

    Firefighter mauled by pit bull at scene of house fire

    Sunday, July 15 2018 3:47 PM EDT2018-07-15 19:47:12 GMT

    SAN LEANDRO, Calif. (AP) - Authorities say a Northern California firefighter was mauled in the face by a pit bull after helping extinguish a house fire.    The East Bay Times reports Alameda County Fire Battalion Chief John Whiting received "extremely severe facial damage" in the attack Saturday in San Leandro.    Division Chief Alan Evans says Whiting required extensive reconstructive surgery.

    >>

    SAN LEANDRO, Calif. (AP) - Authorities say a Northern California firefighter was mauled in the face by a pit bull after helping extinguish a house fire.    The East Bay Times reports Alameda County Fire Battalion Chief John Whiting received "extremely severe facial damage" in the attack Saturday in San Leandro.    Division Chief Alan Evans says Whiting required extensive reconstructive surgery.

    >>
HD DOPPLER 6i
/
  • Top Stories from KHQHomeMore>>

  • Motorcyclist killed in crash on Sherman Pass

    Motorcyclist killed in crash on Sherman Pass

    Monday, July 16 2018 1:58 AM EDT2018-07-16 05:58:31 GMT

    SHERMAN PASS, Wash.- A 53-year-old man was killed Sunday after a crash involving a motorcycle and transit van. The crash happened on State Route 20, just before 6pm on Sunday, about 14 miles east of Republic.

    >>

    SHERMAN PASS, Wash.- A 53-year-old man was killed Sunday after a crash involving a motorcycle and transit van. The crash happened on State Route 20, just before 6pm on Sunday, about 14 miles east of Republic.

    >>
  • NEW PHOTOS: Oregon woman rescued after spending a week at the bottom of a cliff

    NEW PHOTOS: Oregon woman rescued after spending a week at the bottom of a cliff

    Sunday, July 15 2018 11:28 PM EDT2018-07-16 03:28:00 GMT
    Courtesy Luanne SandvikCourtesy Luanne Sandvik

    MONTEREY COUNTY, Cali.- New photos have emerged showing the rescue of an Oregon woman, whose car plummeted over a cliff in California. Angela Hernandez, of Portland, is recovering in a hospital, after spending a full week at the bottom of a cliff. 

    >>

    MONTEREY COUNTY, Cali.- New photos have emerged showing the rescue of an Oregon woman, whose car plummeted over a cliff in California. Angela Hernandez, of Portland, is recovering in a hospital, after spending a full week at the bottom of a cliff. 

    >>
  • Spokane family keeps daughter's legacy alive with pet food donations

    Spokane family keeps daughter's legacy alive with pet food donations

    Sunday, July 15 2018 9:53 PM EDT2018-07-16 01:53:17 GMT

    SPOKANE, Wash. -  It's been four years since Rory Fees took her own life at just 14 years old, but her friends are continuing to live Rory's Way. “Her friends are still involved in my life, and it just shows that Rory really meant a lot to them and we all miss her," said Rory’s mother, Jennifer Fees

    >>

    SPOKANE, Wash. -  It's been four years since Rory Fees took her own life at just 14 years old, but her friends are continuing to live Rory's Way. “Her friends are still involved in my life, and it just shows that Rory really meant a lot to them and we all miss her," said Rory’s mother, Jennifer Fees

    >>