In view of realized and expected labor market conditions and inflation, the Fed decided to raise the target range for the federal funds rate from 1.5 to 1.75%, the central bank said in a statement after concluding a two-day meeting.
The U.S. economy will grow at 2.7% in 2018 and 2.4% in 2019, higher than previous projections of 2.5% and 2.1% respectively.
Wednesday's announcement marked the Fed's sixth rate hike since late 2015 and the first move under Jerome Powell, who took the helm of the central bank in February.
