The US Federal Reserve raised its base rate

The US Federal Reserve raised the base rate from 0.5-0.75 percent to 0.75-1.0 percent. The previous increase took place in December 2016.

After the last increase, the Fed announced that it expects to raise rates three times in 2017.

• Raising the base rate is aimed at fighting inflation in the US and often leads to an increase in the dollar. This is reflected both in the exchange rates of other countries (including Russia), and in the commodity market, where trading takes place in dollars.
• From December 2008 to the end of 2015, the Fed kept the base rate at a record low of 0-0.25 percent. The rate increase was due to the improvement in the labor market in the US and the expected rise in inflation.