>> Nine years after the end of the financial crisis, and the Federal Reserve is finally shifting out of panic mode. I'm in New York. Policymakers on Wednesday ditched a long-held crisis-era pledge to keep interest rates low for "some time", and that's because inflation is starting to heat up, unemployment rate is at a near two decade low, and the Trump tax cuts are expected to continue to fuel economic growth.
Federal Reserve Chairman, Jerome Powell.>> The economy is continuing to make progress. The economy has strengthened so much since I joined the Fed in 2012, and even over the last couple of years, the economy's in a very different place. So really, the decision you see today is another sign that the US economy is in great shape.
>> That praise brought with it a second rate hike for the year. The Fed's key lending rate lifted to a range of 1.75 to 2%. That's almost a full percentage point higher than June 2017, and Powell is expected to oversee two more rate increases before this year is out.
>> We continue to believe that a gradual approach for increasing the federal funds rate will best promote a sustained expansion of economic activity, strong labor market conditions, and inflation near our symmetric 2% goal.>> The slightly more aggressive than expected stance caught some financial market players off-guard, something the Fed hopes not to do next year.
Beginning in January, the Fed chief will hold a live press conference after every meeting, suggesting that after years of only raising rates at the four yearly meetings with the press conference, a rate hike could come at any of the eight meetings held each year.>> As part of their approval