As widely expected, the US central bank, the Fed finally has raised its key interest rate from a range of 0% to 0.25% to a range of 0.25% to 0.5%. It was the first rate hike for the Fed in almost a decade after experiencing a financial crisis in 2008. The rate hike indicated that the Fed’s optimist on the US economy to grow strong and no longer needs crutches. The Fed feels confident about the fundamentals driving the U.S. economy, the health of U.S. households, and domestic spending. However, the Fed acknowledged pressures on some sectors of the economy, particularly manufacturing, and the energy sector. The Fed also raises its estimate on the economy expecting a growth of 2.4% next year, up from 2.3%. The Fed also lower unemployment projection to 4.7% in 2016, down from 4.8%.