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What Yellen said on rates, oil and the US economy

The historic move by the US Federal Reserve to raise interest rates last week has implications that reverberate worldwide. Borrowers who have taken on housing loans, for example, will eventually find themselves paying more in interest, depending on the package they signed up for. Savers, meanwhile, can enjoy higher yields on their bank accounts. Today, we run highlights from the Fed's press conference on Wednesday.

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The median projection for the federal funds rate rises gradually to nearly 1.5 per cent in late 2016 and 2.5 per cent in late 2017, says Ms Yellen. As the factors restraining economic growth continue to fade over time, the median rate rises to 3.25 per cent by the end of 2018, close to its longer-run normal level, she adds.

Why rates are going up

Janet Yellen: Good afternoon. Earlier today, the Federal Open Market Committee (FOMC) decided to raise the target range for the federal funds rate by 0.25 percentage point, bringing it to 0.25 to 0.5 per cent.

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