Fed hikes key rate for second time in 10 years

WASHINGTON (AP) — And we officially have a Federal Reserve rate hike, the second increase in more than 10 years.

Fed officials ended their final meeting of 2016 by raising the federal funds rate—what banks charge each other for short-term loans—to a range of 0.50 percent to 0.75 percent. The Fed previously increased rates at the December 2015 meeting from a near-zero level, an unprecedented low that was set in 2008 amid the fallout from the housing bust and financial meltdown.

The sluggish recovery has meant that Fed officials delayed a rapid rate increase, helping to stimulate economic activity by making it cheaper to borrow. The ten Fed officials voted unanimously for the rate hike, making it the first time since June that they all agreed.