Federal Reserve Board Chairman Jerome Powell speaks during a news conference in mid-2018. Photo: AFP/ Andrew Caballero-Reynolds

The US Federal Reserve raised interest rates, as expected, by a quarter point, and forecast another two hikes this year.

“The Committee expects that further gradual increases in the target range for the federal funds rate will be consistent with sustained expansion of economic activity, strong labor market conditions, and inflation near the Committee’s symmetric 2% objective over the medium term,” the Fed said.

Fed chair Jerome Powell said in a press conference after the announcement that “The economy is doing very well,” adding that “most people who want to find jobs are finding them, and unemployment and inflation are low.”

The Dow Jones Industrial Average and S&P 500 slid after the announcement, falling around 0.3% as of 3:45 EST.