The US Federal Reserve on Wednesday raised the benchmark interest rate by a quarter percentage point as expected, citing an improving economy, after its first policy meeting since President-elect Donald Trump's election victory.

The policy-setting Federal Open Market Committee voted unanimously to increase the key federal funds rate to a range of 0.5 to 0.75 percent, but repeated that it expects the economy will require only "gradual" increases going forward. 

The rate increase from the previous range of 0.25 to 0.5 percent is the first hike since December 2015 and only the second in a decade.