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Yellen warns not to 'overblow' liftoff as Federal Reserve raises rates

FOMC embarks on first tightening cycle since June 2006 with 25bp hike

Federal Reserve chair Janet Yellen

The Federal Reserve raised interest rates for the first time since June 2006 today (December 16), with Janet Yellen insisting it was "prudent to begin early and gradually".

She was speaking after the Federal Open Market Committee (FOMC) voted unanimously to raise the target for the federal funds rate by 25 basis points to between 0.25% and 0.5%.

The FOMC judged there had been "considerable improvement" in labour market conditions this year, and it was "reasonably confident" inflation would

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