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BUSINESS HIGHLIGHTS Fed finally lifts key interest rate from near zero

BUSINESS HIGHLIGHTS Fed finally lifts key interest rate from near zero

WASHINGTON (AP) — The Federal Reserve is raising interest rates from record lows set at the depths of the 2008 financial crisis, a shift that heralds modestly higher rates on some loans.

The Fed coupled its first rate hike in nine years with a signal that further increases will likely be made slowly as the economy strengthens further and inflation rises from undesirably low levels.

The central bank said in a statement after its latest meeting that it was lifting its key rate by a quarter-point to a range of 0.25 percent to 0.5 percent. Its move ends an extraordinary seven-year period of near-zero borrowing rates.

November home construction recovers after October slide

WASHINGTON (AP) — A big jump in apartment construction in the Midwest and South boosted the pace of homebuilding in November, marking a solid bounce back after tumbling in October.

Construction of single-family houses also increased and reached an eight-year high.

The Commerce Department said Wednesday that total housing starts — both houses and apartments— climbed 10.5 last month to a seasonally adjusted annual rate of 1.17 million homes. The increase reversed much of drop in stars during October.

US industrial production worst month since 2012

WASHINGTON (AP) — U.S. industrial output fell for the third straight month in November, another sign that American manufacturers are under stress.

American industrial production dropped 0.6 percent last month, the Federal Reserve said Wednesday. It was the biggest drop since March 2012. Manufacturing output was flat after expanding 0.3 percent in October.

American industry is being hurt by economic weakness overseas and a strong dollar that makes U.S. goods more expensive in foreign markets. Still, the American economy is relatively healthy thanks to solid consumer spending.

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