The Federal Reserve raised interest rates by another quarter of 1 percent Wednesday, June 15. This is the second time in three months that the Federal Reserve has increased rates, a sign of confidence in the growing strength of the U.S. economy. The Fed has only raised interest rates four times since 2015, Reuters reported.
It estimated that economic growth will continue through 2017, staying on pace at 2.2 percent. It anticipates raising rates once more in 2017 - and three times in 2018.
The rate hike has also raised some concerns about increasing levels of inflation. It sits at 1.5 percent, down 0.3 percent from a few months ago.
Yellen stated that it was important to bring inflation back up to 2 percent. However, according to Reuters, the Federal Reserve brushed aside concerns.
The major economic indices - the NASDAQ, S&P 500 and the Dow Jones Industrial Average - did not fluctuate much in light of the news, WSAW-TV reported.
The Federal Reserve could raise the interest rate by another quarter of 1 percent in September.