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July 01, 2005

The Fed Moves Up to 3.25%

Ed Andrews reports:

Fed Continues to Raise Rates at a 'Measured' Pace - New York Times: As investors had already assumed, the central bank raised the federal funds rate on overnight loans between banks by a quarter point, to 3.25 percent. The central bank also repeated previous declarations that monetary policy is "accommodative," which means that interest rates are still lower than officials want, and it said interest rates could still rise at a "measured" pace.... Today's decision marked the one-year anniversary of the Fed's effort to reverse the easy-money policies after 2001, when the central bank was fighting off an economic slowdown and a collapse of the stock market bubble...

Posted by DeLong at July 1, 2005 02:02 PM