The Federal Reserve raised interest rates Wednesday and indicated that it's likely to increase rates twice more by year end. That brings the benchmark Fed funds rate up to 2%, its highest level since 2008. In a statement, the Fed noted that the economy was growing at a "solid rate," prompting the action--and expected further hikes--to bring interest rates back up to more normal levels.
The latest rate increase was widely anticipated in the market; long-term Treasuries, typically considered the most interest-rate sensitive of bond types, were flat last week.
Christine Benz does not own shares in any of the securities mentioned above. Find out about Morningstar's editorial policies.