Stocks close lower as Fed raises interest rates

U.S. stocks briefly dipped Wednesday after the Federal Reserve raised short-term interest rates by a quarter point, but the markets made new gains Thursday shortly after opening. Fed policymakers said they expect to raise the interest rate a fourth time later this year and three times next year to keep a check on inflation in the strengthening U.S. economy.

Political considerations did not influence the decision, Federal Reserve Chairman Jerome Powell said during a news conference, adding that policymakers there were focused on maintaining low unemployment and stable inflation. He also downplayed the possibility that the increase cost would negatively affect possible home buyers.