Fed increases key interest rate, signals faster pace of rate hikes next year

WASHINGTON - Federal Reserve officials see a stronger U.S. economy and signaled Wednesday that would mean a slightly faster pace of interest rate hikes in coming years.

For the moment, they're sticking with plans for three small increases in their benchmark interest rate this year while adding one more hike in 2019 than they had indicated in December.

But their official forecast released Wednesday showed central bank policymakers were close to adding a fourth rate hike in 2018. Some analysts said they could still do so if strong growth, fueled by the large tax cuts, continues.

The first of this year's rate increases came Wednesday.

As widely expected, Fed policymakers announced a 0.25 percentage point increase