The Fed's move is based on the three reasons

Just as I expected, the US Fed decided to increase the target range for the federal funds rates to 0.25-0.5 percent today. The US Fed implied that in the future there would no more big changes in the Fed rates. The Fed made such move based on three reasons. Firstly, the Fed kept its words. Over the last several months, the Fed made several implications of increasing its rates. To maintain the central bank's credibility, the Fed needed to raise its rates at some point. Secondly, the labour market is performing well and the economy is growing relatively compared with many other developed countries around the world. This has left room for the Fed to raise its rates without shrinking the US economy. Thirdly, the inflation rate is still very low. The Fed needed to be aware of such fact. Raising rates could create further pressure to drag down the inflation rate. Therefore, the Fed had to imply that there would only be some 'gradual'" increases in the rates in the future. In general, I think the Fed has chosen the best move that keeps it credible and avoid freaking out the market.