The Fed announced its decision to raise the key interest rate, which was close to the zero level for the first time since December 2008. Fed officials stressed that further rate hikes will be gradual.
The range for the interest rate is 0.25% -0.5%.
The Committee on Open Market unanimously decided. According to the new median forecast of 17 heads of the Fed's interest rate to the end of 2016 to rise to 1.375% by the end of 2017 - up to 2.375%, and the end of 2018 it will reach 3.25%. The Fed plans to increase the rate of four a quarter percentage point in 2016, four in 2017 to increase and three or four to increase in 2018.
When the Fed will raise interest rates next time it depends on the dynamics of inflation. The preferred Fed target rate of inflation for three years is just below 2%.
The Fed's decision comes into effect on Thursday. And today, the central bank's two new arm of its monetary policy.
One - is the rate on deposits, or reserves that commercial banks hold at the central bank. The rate on deposits increased to 0.50% from 0.25%. Another tool - a rate that the Fed pays money market mutual funds under reverse repurchase agreements. This rate increase to 0.25% from 0.050%.
Fed officials expect their key interest rate or the federal funds rate, will move to the middle of the range of 0.25% -0.50%, which is created by using the above two rates.