Falling unemployment rates and rapid inflation led the Federal Reserve on Wednesday to raise interest rates for the second time this year. Officials indicated that there would likely be two more increases in 2018, "consistent with sustained expansion of economic activity, strong labor market conditions, and inflation." The quarter-point hike brought the rate to 2 percent. The decision came with a statement that changed course from a May increase, when the Fed said there would be only three total increases in 2018 and forecasted that things would remain steady "for some time."

Scroll for 5 things you
need to know now