Federal Reserve raises rates to 3%

The Federal Open Market Committee decided on Tuesday 3 May to raise its target for the federal funds rate by 25 basis points to 3 per cent. In its statement the FOMC said monetary policy remained "accommodative" and that it expected to continue removing this accommodation "at a pace that is likely to be measured".

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 ongo