The Federal Reserve on Wednesday raised its key interest rate for only the second time in a decade, by a quarter-point to 0.5%-0.75%.

The Fed last hiked the benchmark rate a year ago, but a winter economic slowdown global uncertainties prevented subsequent tightening, until now, says rttnews.

With the jobs market improving, inflation picking up, and U.S. stocks at record highs, policy makers ran out of reasons to delay any further.

"Information received since the Federal Open Market Committee met in November indicates that the labor market has continued to strengthen and that economic activity has been expanding at a moderate pace since mid-year," the Fed statement read.

Markets are expected to take today's rate hike in stride, but the outlook on interest rates for 2017 remains somewhat murky. The Fed's 'dot plots' now predict three rate hikes in 2017, one more than previously estimated.