Fed Raises Rates, Maintains Forecast for One More in 2017

The Federal Reserve raised its benchmark rate by a quarter percentage point, forecasting one more increase this year and several next year. Inflation is slightly below target but expected to stabilize. The Fed plans to reduce its balance sheet gradually, with specific caps on Treasurys and mortgage securities. The Fed funds rate remains the primary tool for monetary policy, but reinvestments may be adjusted if economic conditions worsen.

What is the new benchmark rate range set by the Fed?

What is the expected PCE inflation rate for this year according to the Fed's forecasts?

How does the Fed plan to reduce its balance sheet?

What is the Fed's primary tool for monetary policy?

What would warrant a sizable reduction in the Fed funds rate?