The Federal Reserve, encouraged by the economy’s performance, raised U.S. interest rates on Tuesday by a quarter-percentage point for the fifth time this year and said it will continue lifting them as the economy grows.

The expected decision by the central bank’s policy-setting Federal Open Market Committee increased the target for the federal funds rate to 2.25 percent from 2 percent.

The dollar dipped in the wake of the decision while stocks edged higher and Treasury bonds pared losses.

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