Fed Lifts Rates 0.25-Pt To 4.75%, Signals May Hike More - 500 Beiträge pro Seite

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=DJ Special Summary Of FOMC Raising Rates 25 BPS Tues

03/28/2006
Dow Jones News Services
(Copyright © 2006 Dow Jones & Company, Inc.)



The Federal Open Market Committee raised the key federal funds rate 25 basis points to 4.75% Tuesday, the fifteenth consecutive rate increase by that amount since June 2004. The meeting was the first FOMC meeting overseen by Ben Bernanke as Fed Chairman.

For complete coverage of the FOMC decision, including the verbatim text, please use the code G/FED.


Fed Lifts Rates 0.25-Pt To 4.75%, Signals May Hike More

The Federal Reserve on Tuesday ushered in the Ben Bernanke era the same way it ended the Alan Greenspan era, with a quarter-point boost in official interest rates, the 15th-straight increase of that size.

Policymakers also signaled their willingness to raise rates again in May and perhaps beyond to ward off possible inflationary pressures. The Federal Open Market Committee, as universally expected, voted unanimously to raise its Federal funds target by 25 basis points to 4.75%, its highest level since April 2001. It raised the largely symbolic discount rate by 25 basis points to 5.75%.


Verbatim Text Of Federal Reserve's Interest Rate Decision

The following is the verbatim text of the Federal Reserve's decision on interest rates released Tuesday, March 28:

The Federal Open Market Committee decided today to raise its target for the federal funds rate by 25 basis points to 4-3/4 percent.

The slowing of the growth of real GDP in the fourth quarter of 2005 seems largely to have reflected temporary or special factors. Economic growth has rebounded strongly in the current quarter but appears likely to moderate to a more sustainable pace. As yet, the run-up in the prices of energy and other commodities appears to have had only a modest effect on core inflation, ongoing productivity gains have helped to hold the growth of unit labor costs in check, and inflation expectations remain contained. Still, possible increases in resource utilization, in combination with the elevated prices of energy and other commodities, have the potential to add to inflation pressures.

The Committee judges that some further policy firming may be needed to keep the risks to the attainment of both sustainable economic growth and price stability roughly in balance. In any event, the Committee will respond to changes in economic prospects as needed to foster these objectives.

Voting for the FOMC monetary policy action were: Ben S. Bernanke, Chairman; Timothy F. Geithner, Vice Chairman; Susan S. Bies; Jack Guynn; Donald L. Kohn; Randall S. Kroszner; Jeffrey M. Lacker; Mark W. Olson; Sandra Pianalto; Kevin M. Warsh; and Janet L. Yellen.

In a related action, the Board of Governors approved a 25-basis-point increase in the discount rate to 5-3/4 percent. In taking this action, the Board approved the requests submitted by the Boards of Directors of the Federal Reserve Banks of Boston, New York, Philadelphia, Cleveland, Richmond, Atlanta, Chicago, St. Louis, Minneapolis, Dallas, and San Francisco.


=US Stocks Down As Fed Gives No Sign Of Ending Rate Hikes

U.S. stocks traded turned mostly lower Tuesday after the Fed raised its target for overnight interest rate as was widely expected.


(END) Dow Jones Newswires

03-28-06 1443ET

[StockFetcher]

einfach nur göttlich die reaktionen.

"No Sign Of Ending Rate Hikes "

Ami, mach weiter so ich möchte den Dax sinken sehen