The U.S. Federal Reserve hiked interest rates for the second time in a decade on Wednesday, raising its target range by 25 basis points. The Federal Open Market Committee increased its target range from 0.25%-0.5% to 0.5%-0.75% in a unanimous decision.
Furthermore, the FOMC expects to hike rates three times in 2017, two or three times in 2018, and three times in 2019.
"Our decision to raise rates should certainly be understood as a reflection of the confidence we have in the progress the economy has made and our judgment that that progress will continue," Federal Reserve Chair Janet Yellen told reporters during a press conference on Wednesday.
She called the economy "remarkably resilient" and that the decision made today was "a vote of confidence" in the U.S. economy.
"As you know this was a decision that was well-anticipated in markets and I think it will have relatively small effect on market rates," Yellen noted.
However, she did add that short-term impacts from the interest rate increase may boost, albeit slightly, borrowing costs which are linked to them. "But, overall I think households and firms will see [a] very modest change from this decision."
"We have judged the course of the U.S. economy to be strong," Yellen contended.