The US Federal Reserve has raised interest rates by 25 basis points, saying it expected inflation to rise to two per cent due to the impact of falling energy and import prices, and strengthening of the labour market. The federal funds rate moves from 0.5 per cent to 0.75 per cent. The Fed's outlook is for further rate increases next year. The rate move is the first since December last year and only the second since the financial crisis. US bank Wells Fargo is in trouble with banking regulators again, the BBC reports. Its "living will", or bankruptcy plan, has been rejected by the Federal Reserve and the Federal Deposit Insurance Corporation. The plan has already been rejected once this year, in April, and until it is passed the bank faces restrictions. It is prohibited from establishing new international units or acquiring a subsidiary that is not a bank. Earlier this year the bank was found to have opened millions of accounts without customers' permission.