The Federal Reserve's Open Market Committee today raised the target for the federal funds rate by 25 basis points to 2.5 percent. This is the sixth straight increase since June, when the Fed raised the rate for the first time in four years. The federal funds target rate is the interest rate charged by banks when they borrow funds "overnight" from each other.
"Output appears to be growing at a moderate pace despite the earlier rise in energy prices, and labor market conditions continue to improve gradually," the Fed said in a prepared statement. "Inflation and longer-term inflation expectations remain well contained."
Posted by gandlwoods at February 6, 2005 06:01 AM