It was a unanimous decision and a momentous one, 10 votes to lift interest rates in the United States for the first time since the credit crunch.
US Federal Reserve chairwoman Janet Yellen says the move reflects the Reserve's confidence in steady growth over the coming year.
"Over the past year, two and a quarter million net new jobs have been created, unemployment has fallen further, and inflation has moved closer to our longer run goal of 2 per cent. We expect the economy will continue to perform well."
Behind the rise in confidence is the Federal Reserve's apparent faith in promises by incoming president Donald Trump of lower taxes and more jobs.
Economists predict, under the President-Elect, a labour market boost will offset falling energy prices.
Ms Yellen points to consumer confidence following the election.
"Household spending continues to rise at a moderate pace, supported by income gains and by relatively high levels of consumer sentiment and wealth."
Rates have hovered just above zero since 2008, during the worst of the global financial crisis.
Today's rise of a quarter of a percentage point brought rates to 0.75 per cent.
That is still comparatively low, but is likely to lift in 2017.
In Australia, Federal Treasurer Scott Morrison says the stock exchange has allowed for the US rise in rates.
"We'll see the implications of that, no doubt, in the weeks and months ahead, but it was very much an expected decision, and I think everybody had factored that in."
Less expected was the Reserve's forecast of three rate rises in the coming year.
Wall Street has experienced some losses as investors show concern over bullish growth.
In New York, the Economic Cycle Research Institute's Lakshman Achuthan says higher than expected confidence may have spooked the market.
"What remains to be seen is if inflation starts to run away a bit. And we don't know the answer to that yet. The future inflation gauge at an eight and a half year high is raising eyebrows."
Unemployment in the United States has hit a nine year low of 4.6 per cent, with more than half-a-million jobs created in the past three months.
In Australia, jobs growth was more modest.
In November, 39,000 full-time jobs were created, slightly lifting the unemployment rate from 5.6 to 5.7 per cent.
Westpac Bank's Global Head of Economics, Bill Evans, says it is a sign the Australian labour-market situation is not as grim as many believe.
"That was because more people entered the workforce, and that's a good sign as well. And it was also interesting that Queensland, in particular, did well this time. And, of course, we know that they're benefiting a lot from the higher coal prices."
Analysts say the numbers are not enough to combat an unexpected contraction in the Australian economy last month, when it dropped half a percentage point.
