Fed officials say they intend to raise rates gradually, if economic growth continues.
After months of speculation, the Federal Reserve announced on Wednesday that it would raise short-term interest rates, the New York Times reports.
The Fed said it would raise rates between 0.25 and 0.5 percent, and it will be the first increase since the financial crisis.
The plan is to raise rates gradually, provided that economic growth continues. Short-term rates will rise by one percentage point per year through the next three years, and interest rates on mortgages, loans, and savings accounts are expected to remain low for the foreseeable future.
“The committee currently expects that, with gradual adjustments in the stance of monetary policy, economic activity will continue to expand at a moderate pace and labor market indicators will continue to strengthen,” the Federal Open Market Committee said in a statement.