As expected, the Federal Reserve on Wednesday raised its benchmark interest rate in response to the improving economy, says rttnews. The Fed has lifted its target rate by a quarter point to a range of 0.75% to 1%.

Earlier this month, Fed Chair Janet Yellen telegraphed today's action by saying the Fed would raise rates barring any unpleasant economic surprises.

Since then, data has shown the unemployment rate fell to 4.7% in February, while core consumer prices (stripping out volatile food and energy) were up by 2.2% compared to a year ago, in line with the Fed's inflation target.

The Fed said "the labor market has continued to strengthen and that economic activity has continued to expand at a moderate pace."

It was the second interest rate in three months, and the first since President Donald Trump's inauguration in January.