Business Briefs

The Federal Reserve has modestly raised a key interest rate for the third time this year in response to a strong U.S. economy and signalled that it foresees another rate hike before the year ends. The Fed on Wednesday lifted its short-term rate - a benchmark for many consumer and business loans - by a quarter-point to a range of 2 per cent to 2.25 per cent. It was its eighth hike since late 2015, and the Fed indicated that it expects to continue gradual increases. It also stuck with a previous forecast for three more rate hikes in 2019. In a statement after its latest policy meeting, the Fed dropped phrasing it had long used that characterized its policy as "accommodative" - that is, favouring low rates.