Anchor: The U.S. Federal Reserve has raised its benchmark interest rate by a quarter of a percentage point. Though the rate has increased for the first time in almost ten years, the Fed made it clear that any further hikes will be gradual.
Our Kim In-kyung has more.
 
Report: All ten members of the U.S. Federal Open Market Committee (FOMC) unanimously decided to raise short-term interest rates on Wednesday.
 
In the widely anticipated decision, the Fed raised its benchmark interest rate a quarter of a percentage point to a range of zero-point-25 to zero-point-five percent.
 
It is the first time the Fed has increased the rate in almost ten years since June 2006 and officially ends a seven-year period in which the Fed held short-term rates near zero.
 
The FOMC said in a press release Wednesday that "there has been considerable improvement in labor market conditions this year, and it is reasonably confident that inflation will rise, over the medium term, to its 2 percent objective."
 
The statement added that monetary policy will remain accommodative after the increase to support further improvements in labor market conditions and a return to two-percent inflation.
 
Fed Chairwoman Janet Yellen said at a news conference after the decision was announced that the hike was a preemptive move and that the Fed won't engage in any abrupt changes.
 
[Sound bite: U.S. Federal Reserve Chairwoman Janet Yellen (English)]
"Even after this increase, monetary policy remains accommodative. The process of normalizing interest rates is likely to proceed gradually."
 
The New York Stock Exchange ended up one percent and European stock markets also gained as uncertainties were removed and as the hike was long expected.
 
As the dollar increased, international oil prices fell almost five percent after two days of gains.
 
The South Korean government convened a macroeconomic meeting on Thursday to monitor financial markets and vowed to respond rapidly.
Kim In-kyung, KBS World Radio News.