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The Federal Open Market Committee, at the close of its two-day policy-setting meeting, today said it will raise the federal funds target rate by a quarter-point to a range of 0.75 to 1 percent.

"As anticipated, the FOMC went forward with the first rate hike of 2017," said NAFCU Chief Economist and Director of Research Curt Long. "Given that inflation is rising and approaching the Fed's 2 percent target, Fed officials had little choice but to raise rates."

"Chair Janet Yellen has indicated that more rate hikes are on the way later this year," Long added.

The committee's revised projections are three quarter-point rate hikes in 2017 (including the one announced today), three in 2018 and three to four in 2019. The FOMC will meet again May 2-3.

The FOMC last raised the federal funds target rate to a range of 0.5 to 0.75 percent last December.

NAFCU will also issue a NAFCU Macro Data Flash report to members today with more information on the FOMC's actions.