Federal Reserve hikes interest rate for third time in 2017

The Federal Reserve has raised its benchmark interest rate for the third time this year. The Fed's rate hike, to a 1.0-to-1.25 percent range, comes as the economy gives off mixed growth signals, with gross domestic product expansion at a mere 1.2 percent in the first quarter but unemployment at a low 4.3 percent in May. Though it assesses the overall economy, the Fed's mandates are to maximize employment and stabilize prices. "The economy will continue to expand Inflation has been more problematic, having long stayed below the central bank's 2 percent target rate.