The Federal Reserve in the US has lifted short-term interest rates by .25 (up from 1.5 to 1.75 per cent) and is forecasting that rates will rise higher than expected in the coming years. It has left it median forecast for interest rates to the end of 2018 unchanged, but projected an extra increase in 2019 and more tightening in 2020. New Fed chairman Jay Powell said the US economy was healthier than it had been in a decade. The UK's financial Conduct Authority is soon to launch consultation on its penalties policy - nearly four years after it first promised a review, reports the FT.  When the review was first mooted, banks were complaining about the increase in fines related to Libor and foreign exchange rigging scandals in the wake of the GFC, but since then fines have dropped sharply. In 2016 the FCA levied £22.2 million in fines, the lowest level since the "light touch" days prior to the GFC. However, last year fines shot up tenfold to £229.4 million. Financial services company UBS has settled with the New York attorney's office over mis-selling of residential mortgage-backed securities in the lead up to the GFC, reports the FT. UBS will pay US$230 million, comprised of US$41 million in cash to New York State and US$189 million of "consumer relief" to Hew York homeowners and communities. OakNorth, a digital bank specialising in lending to entrepreneurs and fast-growing businesses, has become the first UK digital-focused consumer bank to report an annual profit. The FT reports that OakNorth recorded a pre-tax gain of £10.6 million in its second full year of operations. It tripled the size of its loan book and generated net interest income of £24.9 million, up from £7.2 million the previous year.