Federal Reserve raises US rates

The Federal Open Market Committee decided on Tuesday 21 September to raise its target for the federal funds rate by 25 basis points to 1-3/4 percent. In its press release the FOMC said despite the rise in energy prices, inflation and inflation expectations have eased in recent months.

The Committee believes that, even after this action, the stance of monetary policy remains accommodative and, coupled with robust underlying growth in productivity, is providing ongoing support to economic activi