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Fed lifts interest rates

(Reuters) – The Federal Reserve raised interest rates by a quarter of a percentage point.

But left its rate outlook for the coming years unchanged, despite projections for a short-term step-up in U.S. economic growth.

Fed Chair Janet Yellen.

(SOUNDBITE) JANET YELLEN, CHAIR, FEDERAL RESERVE (ENGLISH) SAYING:

“The U.S. economy is performing well. The growth, that we’re seeing, it’s not based on, for example, an unsustainable buildup of debt, as we had in the run up to the financial crisis. The global economy is doing well. We’re in a synchronized expansion. This is the first time in many years that we’ve seen this inflation around the world is generally low. So, I think, the risks are balanced, and there’s less to lose sleep about now than has been true for quite some time.”

The Fed projected three more hikes in each of 2018 and 2019 before a level of 2.8 percent is reached.

Ross Gerber runs an investment fimr Gerber Kawasaki.

(SOUNDBITE) ROSS GERBER, PRESIDENT AND CEO, GERBER KAWASAKI WEALTH AND INVESTMENT MANAGEMENT (ENGLISH) SAYING:

“Yeah, I mean, I think that the Fed is doing what they need to be doing, so, clearly, in this environment, they need to be raising rates. We just want them to do it very slowly, exactly what they’re doing. We have a lot of confidence in Janet Yellen. We’re very comfortable. So, we’re, we’re more worried as we switch Fed chairmans in early next year to see what kind of Fed we get in 2018. So, we’re hoping it’s as dovish as the Fed that we had in 2017.”

U.S. stocks extended gains after the release of the policy statement. Treasury yields dropped to session lows. The U.S. dollar fell against a basket of currencies.