Fed raises rates, drops 'measured' stance

The Federal Open Market Committee decided on Tuesday to raise its target for the federal funds rate by 25 basis points to 4-1/2 percent. In its statement the FOMC dropped "is likely" and replaced it with "may," regarding further policy firming.

Although recent economic data have been uneven, the expansion in economic activity appears solid. Core inflation has stayed relatively low in recent months and longer-term inflation expectations remain contained. Nevertheless, possible increases in reso

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