The Federal Reserve on Wednesday raised the overnight interest rate from .75 to 1 percent, according to Reuters. The wire service reported the move was “spurred by steady economic growth, strong job gains and confidence that inflation is rising to the central bank’s target.”
The move had been widely expected for weeks, with speculation on when and how much the increase would be being a fixture in news reports.
In the policy statement accompanying the move, the Fed said that any further increases would be “gradual,” though many economists believe there will be additional hikes this year.
“With gradual adjustments in the stance of monetary policy, economic activity will expand at a moderate pace,” the Fed said.
Last summer amid discussion about the possibility of increasing interest rates, asset management firm TIAA said that commercial real estate would continue to be an attractive investment even if rates began to rise.