The daily business briefing: June 14, 2018

The Fed raises interest rates as economy gains steam, Comcast challenges Disney's bid for 21st Century Fox, and more

The Comcast logo in Florida
(Image credit: Joe Raedle/Getty Images)

1. Fed raises interest rates

The Federal Reserve on Wednesday raised its target short-term interest rate by a quarter of a percentage point for the second time this year, citing falling unemployment and rising inflation. The Fed also indicated that it probably would raise rates two more times this year, up from the single hike previously expected. The move pushes the target rate, which is closely linked with credit cards and home equity credit lines, to a range of 1.75 percent to 2 percent. Stocks edged down after the news, and U.S. stock futures inched down early Thursday. Investors had expected the hike but markets had been pricing in just a 46.5 percent chance of four increases this year, after the Fed indicated in May that three rate hikes were likely.

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Harold Maass, The Week US

Harold Maass is a contributing editor at The Week. He has been writing for The Week since the 2001 debut of the U.S. print edition and served as editor of TheWeek.com when it launched in 2008. Harold started his career as a newspaper reporter in South Florida and Haiti. He has previously worked for a variety of news outlets, including The Miami Herald, ABC News and Fox News, and for several years wrote a daily roundup of financial news for The Week and Yahoo Finance.