Fed hikes rates again, but Olson dissents

The FOMC decided Tuesday 20 September to raise its target for the federal funds rate to 3.75%. In a statement it maintained its 'measured' pace for removing policy accommodation and revealed that Mark Olson had voted to keep rates unchanged.

Output appeared poised to continue growing at a good pace before the tragic toll of Hurricane Katrina. The widespread devastation in the Gulf region, the associated dislocation of economic activity, and the boost to energy prices imply that spending, produ