Federal funds rate raised to 2.75

by on March 22nd, 2005


WASHINGTON (Reuters) – The Federal Reserve raised a key U.S. interest rate a quarter percentage point to 2.75 percent on Tuesday, conceding inflation risks were growing but expressing confidence gradual rate rises can contain prices.

The central bank’s policy-setting Federal Open Market Committee voted unanimously to raise the benchmark federal funds rate — which affects credit costs throughout the economy — for a seventh straight time since the current rate-rise campaign began last June.

The Fed said it could keep raising short-term borrowing costs at a “measured” pace, implying further modest quarter-point increases instead of larger ones financial markets had begun to brace for.

Etalkinghead Staff