As expected, the Federal Reserve has boosted a key short-term interest rate by a-quarter of a point. It's the fourth increase this year.
As result, the Federal Funds rate is now at two percent, the highest level in three years.
In its statement, the policy-setting Federal Open Market Committee says "output appears to be growing at a moderate pace" despite higher energy prices. The Fed also notes the job market is doing better.
The Fed also voted to raise the largely symbolic discount rate a quarter percentage point to three percent.
Greg McBridge, a financial analyst with bankrate.com, says as a result of increased borrowing costs, many loan products such as credit cards and home equity lines of credit will be getting even more expensive for consumers.
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