The Federal Reserve is set to increase interest rate for the first time ever this week, according to a new report.
The Federal Open Market Committee announced Wednesday that it will increase its benchmark overnight interest rate by 1 basis point, or 0.25 percent, to 0.50 percent, the first such increase since January.
It’s the first increase in the central bank’s policy-setting tool since 2011, when it increased its benchmark rate by 0.75 percent.
The rate rise will last for three months.
The Fed also announced a two-month delay in the first $500 billion of bond purchases that will allow it to more closely track inflation.
The committee said in a statement that the new policy is expected to reduce short-term volatility and boost economic activity, but will “lead to inflationary pressures.”
The Fed’s rate hike will boost the economy, but it will also bring the U.S. to the brink of recession.
While inflation is expected in the coming months, there is still uncertainty about how quickly inflation will rise and how much it will affect the U,S.
economy, and inflation-targeting programs.
The Committee of the Regions’ Monetary Policy Committee also said it expects the unemployment rate to continue to fall in 2018.
The national unemployment rate has fallen to 6.9 percent, a drop from 7.1 percent in August, according the latest available data.
The Labor Department said Thursday that the economy added 114,000 jobs in July, a sign that the labor market is recovering from the fallout from Hurricane Harvey.
The unemployment rate fell to 7.2 percent in April, down from 8.2 in March.
The number of people seeking work increased to a record high of 26.5 million, up from 26.4 million in July.
The economy added a solid 0.3 percent in the third quarter of 2018, according a report from the Bureau of Labor Statistics.
In July, the unemployment rates fell for the fourth straight month, while the unemploymentrate fell for four consecutive months.