The central bank hasn’t done so since 2006, before it began lowering its federal funds rate target to juice the economy, eventually reaching near zero in the depths of the Great Recession, where it has stood ever since. The rate was raised today by .25 percentage points.
The Fed justified the hike by citing the improved economy and labor market, and it is seen as a response to the possibility that inflation will get out of hand. However, there are some who say inflation is not yet a threat, and that the Fed should keep its rate at near zero until the jobs situation improves.