The Federal Reserve raised interest rates by a quarter of a percentage point today, June 13, 2018 and signaled it might raise rates two more times this year. Fed Chairman Jerome Powell said the US economy is in “great shape” and that “most people who want to find jobs are finding them.”
In a press release, the Federal Reserve stated that "in view of realized and expected labor market conditions and inflation, the Committee decided to raise the target range for the federal funds rate to 1-3/4 to 2 percent. The stance of monetary policy remains accommodative, thereby supporting strong labor market conditions and a sustained return to 2 percent inflation."
The National Association of Realtor's Chief Economist Lawrence Yun reacted to the Federal Reserve’s decision to raise short-term interest rates by saying that “we are still in the middle innings of rising interest rates; consumers should expect another three or four rounds of interest rate increases over the next 18 months. Mortgage rates will consequently continue to nudge higher. Fortunately, the economy is strong and wages are rising. If housing supply can be increased through more home building, then the negative impact of rising interest rates can be mitigated.”