Most officials expect the Fed would need to raise rates at least three more times next year and at least once more in 2020, leaving rates in a range between 3.25% and 3.5% by the end of 2020, the same end point officials projected in March.
The Fed was widely expected to raise interest rates Wednesday amid strong economic data.
Fed policy makers now see US unemployment at 3.6 per cent in the fourth quarter, followed by 3.5 per cent in 2019 and 2020, based on median projections.
The Fed move came after a two-day meeting where its members discussed the robust state of the USA economy and the potential impact of a trade war amid rising tension between the U.S. and its largest trading partners.
The Fed has long aimed for 2 percent inflation, a level policymakers think is key to a healthy economy.
United States unemployment is already at 3.8 per cent, the lowest since 2000, and the Fed believes it will fall to 3.6 per cent by the end of the year, which would be the best rate since the 1960s.
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Mr Trudeau said: "Canadians, we're polite, we're reasonable but we also will not be pushed around". "Divisive rhetoric and personal attacks from the USA administration are clearly unhelpful".
The federal funds rate now sits between 1.75% and 2%.
The vote to raise interest rates was unanimous among all eight participants. The unemployment rate is seen falling to 3.6% in 2018, compared to the 3.8% forecast in March.
A Reuters poll on Wednesday found the median expectation among the so-called primary dealers, the 23 large banks authorized to transact directly with the Fed, was for the central bank's benchmark overnight lending rate to climb to a range of 2.25 percent to 2.50 percent by the end of this year. With higher interest rates, this means that real interest rates will push higher.
That puts the Fed on track for four rate hikes total in 2018, something the Fed hasn't done since 2006. Inflation by the Fed's preferred gauge would hit its 2 percent target this year and edge up to 2.1 percent over the next two years.
The rate hike on Wednesday was the seventh in this cycle and effectively marked a shift to a neutral stance in which the policy rate matches inflation at just under 2 percent, leaving zero "real" accommodation. But that exorbitant rate is likely to go up to 15.57% within two billing cycles, CompareCards says, as lenders pass along the higher rates to clients. Prices did not spike in response to the huge monetary stimulus, nor has the job market cooled since 2015 when the Fed began tightening policy. But if it miscalculates and overdoes the credit tightening, it can trigger a recession. He'll likely address the decision to hike rates and the Fed's views on the overall economic outlook. It will become the longest if it lasts past June 2019, at which point it would surpass the expansion that lasted from March 1991 to March 2001. Canada, the European Union and Mexico have all pledged to retaliate with tariffs on USA imports, which some studies show could cost the US close to 200,000 jobs.
While many economists worry about a trade war harming growth, the Fed did not mention trade concerns in its statement.