Here comes the Fed statement ...

The Federal Reserve is set to release a statement on the outcome of its two-day meeting in Washington at 2 p.m. ET.

It's widely expected to show that the Federal Open Markets Committee voted to raise its benchmark fed funds rate by 25 basis points to a range of 0.75%-1%, marking its third increase since the Great Recession.

Just one month ago, market participants believed the Fed would skip this meeting and perhaps go in June. However, several officials including Chair Janet Yellen made comments that gradually convinced markets that the Fed was ready.

The Fed is raising rates as further acknowledgement that, in its view, the labor market has nearly achieved its goal of full employment, and that inflation will continue to make steady progress to its 2% target.

Last week Friday, the better-than-forecast February jobs report cemented market expectations for a rate hike; it showed a rebound in wages and manufacturing-sector investment.

The Fed also has its eye on financial markets. Since the election, the benchmark S&P 500 index has gained 11%, as investors anticipate that President Donald Trump's agenda will stimulate business growth. The relative calmness in markets likely factored into the Fed's belief that another interest-rate increase is appropriate.

"If the Fed is raising rates into a stronger environment, the stronger environment is far more important than rates going up 25 basis points," said Jamie Dimon, the CEO of JPMorgan, during the Business Roundtable's media briefing on Tuesday. For the Fed, "the 'why' is more important than the 'what.'"

That's not to say the 'what' is unimportant. Although the Fed's benchmark rate is likely to increase by just 25 basis points, it's the third in what could be several rate hikes later this year.

"That cumulative effect is likely to grow fast," said Greg McBride, the chief financial analyst at Bankrate.com. "Unlike the first two rate hikes where there were 12 months in between, here we are just 3 months later, and the Fed's raising rates again."

The Fed's announcement will be accompanied by new projections for the number of rate hikes this year, and are expected to be unchanged at three. The Fed will also release new forecasts for US economic growth and inflation.

At 2:30 p.m. ET, Fed Chair Janet Yellen will hold a press conference on the rate decision.

Refresh this page at the top of the hour for full details of the Fed's statement ...