The Federal Reserve announced on Wednesday that it would raise short-term interest rates for the first time in nine years, the New York Times reports. The FOMC will gradually raise the federal funds rate to a range of 0.25% to 0.50%.
“With gradual adjustments in the stance of monetary policy, economic activity will continue to expand at a moderate pace and labor market indicators will continue to strengthen,” the Fed said in its official policy statement.
While the increases will be implemented gradually, interest rates on mortgages and other loans are still likely to be remain low by historical standards for years to come. Still, the Washington Post says to expect an increase in mortgage rates and auto loans as the nation’s economy continues to recover from recession.