Thursday, August 11, 2005

Federal Reserve Raises Target for the Federal Funds Rate

As expected, the Federal Reserve has raised the target for the Federal Funds Rate to 3.5 percent.

The increase represents a quarter of a percentage point. The Fed is likely to keep raising interest rates at its final three meetings of the year, in September, November and December, leaving the funds rate at 4.25 percent at year's end, key economists are predicting.

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