Under the Chairman Jerome Powell, Federal Reserve officials meeting was held for first time and they have raised the benchmark lending rate a quarter point and predict a steeper path of increase in 2019 and 2020, quoting an improving economic outlook.

Policy makers continued to project a total of 3 increases this year. The vote to hike the federal funds rate target range of 1.5% to 1.75% was a unanimous 8-0. In the press conference Powell stated, “The job market remains strong, the economy continues to expand and inflation appears to be moving towards towards the FOMC’s 2% longer running goal.”

Further, the upward revision in their rate suggest Fed officials are looking through soft first-quarter economic reports and expect a lift this year and next from tax cuts passed by Republicans in December.

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