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Stocks spiked after the Federal Reserve raised interest ratesby Circa News
Economics & Business

The Federal Reserve raised its interest rates Wednesday for the second time in three months, increasing rates by a quarter of a percentage point. 

This was a widely telegraphed move that seemed increasingly likely after a strong February jobs report that showed the economy was improving.

Increasing rates is a method of reducing inflation and often has widespread ripple effects on the business world. 

The Dow, a measure of the strength of the stock market, increased 100 points after the Federal Reserve raised its interest rates. 

The rate hike may increase the interest credit-card holders may have to pay on their balance, CNBC reports. It may also increase the interest on student loans, depending on whether or not the loans are fixed-rate or variable-rate. Variable-rate loans' interests rate is tied to the Federal Reserve's rate.

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