The Federal Reserve on Wednesday lifted its key interest rate from 1.5 percent to 1.75 percent, the highest level since 2008.

The move, the central bank’s first major decision under new Chairman Jerome H. Powell, was widely expected as the U.S. economy continues to strengthen and stock markets remain near record highs. The Fed also significantly boosted its forecast for U.S. growth this year and next. The U.S. economy is on track to expand 2.7 percent this year and 2.4 percent in 2019, Fed officials now say, a jump from the prior projection done before the Republican tax cuts were finalized.

“The economic outlook has strengthened in recent months,” the Fed said in its statement Wednesday. The Fed’s policy committee still met despite the snow that shut down most of Washington D.C.