US Central Bank Raises Benchmark Rate as US Economy Strengthens

As expected, officials of the U.S. Federal Reserve voted to raise the central bank’s short term interest rate by a quarter percent on Wednesday, setting the stage for two more rate increases this year. Wall Street welcomed the rate hike as another sign that the economy is on the mend. But for consumers and businesses, a rate hike means higher borrowing costs. Mil Arcega has more.