The US Federal Reserve voted Wednesday to increase the federal funds rate to a target range of 0.25% to 0.5%. It’s the first time in almost 10 years the board has raised interest rates.

“The important part of this statement was not the rise in interest rates, which came as a surprise to no one, but the message it gave to financial participants on the path of future rate hikes,” James Marple, senior economist and director at TD Economics, wrote in a research note. “On this front, the Fed reaffirmed that the pace of rate hikes would be slow relative to history, and the length of the cycle, by extension, would be longer.”

That the Federal Reserve now feels it’s appropriate to tap the brakes means they feel the economy is now strong enough to not tip into recession, said Steven Drexel, president and CEO of Cornerstone Staffing Solutions, a longtime staffing industry veteran and close watcher of the economy.

But the Fed’s move likely won’t have a large impact on the staffing industry especially given the advance notice of a possible increase before Wednesday's announcement.

“They’ve done plenty to warn people and the markets and businesses have already priced in kind of a small increase,” Drexel said. “So I don’t expect much of an effect.”

Drexel also said rates have been near zero for so long that people might have forgotten that’s not the natural state. If rates remain at zero and the economy slows again in the future, the Fed’s options to accelerate the economy would be more limited because they would already have their foot on the gas.

In other economic news, The Conference Board’s US leading economic index released today rose 0.4% in November to a level of 124.6 (2010=100). November’s increase followed a 0.6% increase in October and no change in September.

“The US [leading economic index] registered another increase in November, with building permits, the interest rate spread and stock prices driving the improvement,” said Ataman Ozildirim, director of business cycles and growth research at The Conference Board. “Although the six-month growth rate of the [leading economic index] has moderated, the economic outlook for the final quarter of the year and into the new year remains positive.”

In addition, the US Department of Labor reported today the four-week moving average of unemployment claims for the week ended Dec. 12 fell by 250 from the previous week’s unrevised average of 270,750.

Total claims fell by 11,000 from the previous week’s unrevised level of 282,000. Bloomberg reported fewer Americans filed for unemployment insurance than forecast.