Fed raises rates, tweaks statement

The Federal Open Market Committee decided on Tuesday 13 December to raise its target for the federal funds rate by 25 basis points to 4-1/4 percent. In its statement the FOMC removed the term 'policy accommondation' but suggested rates could rise further with 'measured policy firming'.

Despite elevated energy prices and hurricane-related disruptions, the expansion in economic activity appears solid. Core inflation has stayed relatively low in recent months and longer-term inflation expectation