Federal Reserve increases rates by 0.25%

The Federal Open Market Committee decided Wednesday 30 June to raise its target for the federal funds rate by 25 basis points to 1-1/4 percent. In a press release the FOMC repeated "policy accommodation can be removed at a pace that is likely to be measured". But added that the Committee will respond to changes in economic prospects as needed.

The Committee believes that, even after this action, the stance of monetary policy remains accommodative and, coupled with robust underlying growth in p