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By Lucy Bayly

In a widely expected move, the Federal Reserve raised its benchmark interest rates for the first time in a year, citing the "considerable progress the economy has made," said Fed Chair Janet Yellen on Wednesday.

Fed officials unanimously agreed to raise short-term interest rates by 0.25 percentage points.

Having already priced in the expected hike, markets reacted calmly: the Dow rose briefly on the news, but settled at around 100 points lower.

The Federal Open Market Committee last hiked rates in December 2015, after slashing the rate to zero during the financial crisis in 2008.

With a nod to President-elect Donald Trump's aggressive economic policy plans, Yellen noted that Americans should prepare for further hikes, saying the committee expected to raise rates "three or more" times in 2017.