The US federal reserve has, for the second time this year raised the countries base interest rate from 1 to 1.25%. The move has come in the midst of a string of weak inflation numbers prompting the FED reiterate they expect inflation to normalise at 2% but confirmed they are watching it ‘very closely’. Markets were quick to note the dropping of any reference regarding a concern from overseas markets indicating a more optimistic global outlook from the FED. Central bank policy makers indicated they were still on course for another quarter point increase this year and fully expected this to continue into 2018. The dollar regained some strength on the news as stocks remained muted.