Federal Reserve gives nod to second rate hike in 2017

Jun 15, 2017, 8:09 AM EDT
Chair of the Federal Reserve Janet Yellen
(Source: Federalreserve/flickr)

Citing continued economic growth and job market strength, the U.S. Federal Reserve voted to raise its key interest rate by 0.25 percent, which is the highest hike since 2008 when financial crisis jolted the markets.

At a time when economic indicators, including inflation, have been weaker, the rate rise has raised a few questions about the bank’s action plan, writes the BBC.

The bank also announced that it will shrink its balance sheet by cutting bond holdings and other securities, a move that signals a tightening monetary policy according to analysts, notes CNBC.