US Fed raises key interest rate amid stronger growth outlook

Washington, March 21 (AFP/APP):The Federal Reserve on Wednesday raised the key lending rate for the first time this year, citing a stronger outlook for economic growth, and hinted at a slightly more aggressive pace for hikes both this year and in 2019.

Newly-installed Fed Chairman Jerome Powell presided over his first meeting which raised the federal funds rate to 1.5-1.75 percent.

In its quarterly forecasts, Fed officials project the benchmark interest rate will end this year at 2.1 percent after two more hikes, unchanged from the December forecast, but will rise to 2.9 percent at the close of 2019, signalling three possible hikes.