Fed expected to raise rates for first time in a year

Money
FILE - In this Nov. 27, 2014 file photo, a woman pays for merchandise at a Kohl's department store in Sherwood, Ark. The Federal Reserve releases consumer credit data for March 2015 on Thursday, May 7, 2015. (AP Photo/Danny Johnston, File)

WASHINGTON (AP) — The Federal Reserve is expected to raise its key interest rate for the first time in a year when its policy meeting ends Wednesday.

The move would lift the rate by a quarter point to a range between 0.5 percent and 0.75 percent, likely nudging up the cost of some consumer and business loans. The Fed last increased rates in December a year ago, when it hiked its benchmark rate from a record low set at the depths of the 2008 financial crisis.

Attention Wednesday will revolve around what Fed official say about the pace of future rate increases against the backdrop of Donald Trump’s election. How the Fed manages its policies might not be clear even after it issues a statement and Chair Janet Yellen holds a news conference.

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