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Janet Yellen

Interest rates just rose, and they could rise more next year

Interest rates just rose, and they could rise more next year

The Federal Reserve's move to boost short-term interest rates last week by a quarter of a percentage point might not change much immediately, financial experts say, but next year or the year after could be a different story if rates keep rising.

Federal Reserve Chair Janet L. Yellen and her colleagues indicated that with the U.S. economy stabilizing and unemployment dropping, more rate increases are ahead. Many observers predict there could be two to four more increases of a quarter of a percent, so the key rate could rise from near zero before last week to 1 percent by the end of 2016.

"The key thing is not that previous announcement, because everybody knew that was...

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