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Fed raises rates; Yellen says bitcoin 'highly speculative'

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Fed raises rates; Yellen says bitcoin 'highly speculative'

Amid wide expectations of a third rate hike for the year, the Federal Reserve raised the benchmark federal funds rate to a target range of 1.25% to 1.50%. The central bank also projected three more rate hikes in 2018 as most Fed officials expected inflation to gradually increase in the medium term.

Fed Chair Janet Yellen, who is set to step down from her post in early 2018, does not expect any significant changes on the Fed's current course on bank rules once current Fed Governor Jerome Powell takes over at the central bank, The Wall Street Journal reports.

On bitcoin, Yellen said that the digital currency has "limited" financial stability risks, "plays a very small role in the payments system" and is a "highly speculative asset." Yellen added that the Fed does not really play any regulatory role with respect to bitcoin other than supervising banking organizations and monitoring their anti-money laundering responsibilities.

Meanwhile, Interactive Brokers Group Inc. has started accepting orders for short sales of Cboe Futures Exchange bitcoin futures, requiring margin of $40,000 per contract. The brokerage firm, which started participating after Cboe Global Markets Inc. launched bitcoin futures trading, is also planning to offer bitcoin futures from CME Group Inc.

In people news, Regions Financial Corp. promoted John Turner Jr. to president of both the Birmingham, Ala.-based company and its unit, Regions Bank. Turner, who will continue to head Regions' corporate banking group, succeeds O.B. Grayson Hall Jr., who will remain chairman and CEO.

In other parts of the world

Asia Pacific: US Fed raises rates; Blackstone to enter Australian mortgage market

Europe: UBS reshuffles top brass; Aegon chair retiring; SEB divests Danish pension biz

Middle East & Africa: Saudi Arabia, UAE lift rates; Fitch takes Qatari banks off Rating Watch Negative

The day ahead

Early morning futures indicators pointed to a higher opening for the U.S. market.

In Asia, the Hang Seng slipped 0.19% to 29,166.38 and the Nikkei 225 slid 0.28% to 22,694.45.

In Europe, around midday, the FTSE 100 shed 0.19% to 7,482.40 and the Euronext 100 fell 0.29% to 1,042.12.

On the macro front

The jobless claims report, the retail sales report, the import and export prices report, the PMI Composite Flash, the Bloomberg Consumer Comfort Index, the business inventories report, the EIA natural gas report, the Fed balance sheet and the money supply report are due out today.

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