Federal funds rate raised to 2.75

by on March 22nd, 2005

http://story.news.yahoo.com/news?tmpl=story&ncid=578&e=2&u=/nm/20050322/bs_nm/economy_fed_dc

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.

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