The departing Fed chair did confess one regret about her (quite successful) tenure - despite years of near-zero interest rates, inflation remains stubbornly below the central bank's 2 percent target.
The Fed now envisions a burst of growth, ultra-low unemployment of below 4 per cent in 2018 and 2019 and continued low interest rates - yet little movement on inflation.
Chicago Fed President Charles Evans and Minneapolis Fed President Neel Kashkari dissented in the policy statement on Wednesday.
When inflation is too low, it can hurt the economy.
"It shows at least some members of the Fed don't see any reason to keep hiking rates in an environment where the economy is growing more strongly but certainly not overheating and where inflation hasn't become a problem and doesn't look like it is going to be one", said Kate Warne, investment strategist at Edward Jones.
"The market has long anticipated the Fed's base rate increase this month", Bank of Korea (BOK) Gov.
Fed Chair Janet Yellen says the prospect of tax cuts has been built into Fed forecasts for some time, and the central bank does not expect a major boost to growth.
"I have tried to be straightforward in saying that this could end up being something that is more ingrained and turns out to be permanent".
Even before Wednesday, most analysts had said they thought the still-strengthening USA economy would lead the Fed to raise rates three more times next year.
Shoppers cross 34th St.in Herald Square in the Manhattan borough of New York, November 24, 2015.
"Stronger GDP growth forecasts and expectations that unemployment will continue to fall" were clearly behind the Fed's move, said Ken Matheny, an economist at IHS Markit. That should put it at a level low enough to mean workers have leverage to demand wage increases and businesses feel emboldened to raise prices.
"The PBOC unexpectedly raised interest rates just a few hours after the Fed did".
Over the past year, overall inflation and inflation for items besides food and energy have declined and are running below the Fed's 2 percent target.
They have made similar projections in the past, and been wrong. Hurricane-related disruptions and rebuilding have affected economic activity, employment, and inflation in recent months but have not materially altered the outlook for the national economy.
Theoretically, there is an unemployment rate below which inflation rises, and while estimates of that "have come down", Yellen said, "it's conceivable that they need to come down even more".
By then, the Fed's target for short-term rates would have reached 3.1 percent - slightly above its estimate of a long-term neutral rate of 2.8 percent.
There are also signs inflation may be firming after a lengthy bout of weakness.
CMC Markets analyst Margaret Yang said the regional malaise was likely due not to the Fed but to the People's Bank of China (PBOC).