Federal Reserve raises rates to 2%

The Federal Open Market Committee decided on Wednesday 10 November to raise its target for the federal funds rate by 25 basis points to 2 per cent. The FOMC said "Output appears to be growing at a moderate pace despite the rise in energy prices, and labour market conditions have improved."

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 a