The Federal Open Market Committee raised its overnight
lending rate to 5% on Wednesday.
Here is the full text of the FOMC's statement.
For immediate release
The Federal Open Market Committee decided today to raise its target for the
federal funds rate by 25 basis points to 5 percent.
Economic growth has been quite strong so far this year. The Committee sees
growth as likely to moderate to a more sustainable pace, partly reflecting a
gradual cooling of the housing market and the lagged effects of increases in
interest rates and energy prices.
As yet, the run-up in the prices of energy and other commodities appears to
have had only a modest effect on core inflation, ongoing productivity gains have
helped to hold the growth of unit labor costs in check, and inflation
expectations remain contained. Still, possible increases in resource
utilization, in combination with the elevated prices of energy and other
commodities, have the potential to add to inflation pressures.
The Committee judges that some further policy firming may yet be needed to
address inflation risks but emphasizes that the extent and timing of any such
firming will depend importantly on the evolution of the economic outlook as
implied by incoming information. In any event, the Committee will respond to
changes in economic prospects as needed to support the attainment of its
objectives.
Voting for the FOMC monetary policy action were: Ben S. Bernanke, Chairman;
Timothy F. Geithner, Vice Chairman; Susan S. Bies; Jack Guynn; Donald L. Kohn;
Randall S. Kroszner; Jeffrey M. Lacker; Mark W. Olson; Sandra Pianalto; Kevin M.
Warsh; and Janet L. Yellen.
In a related action, the Board of Governors unanimously approved a
25-basis-point increase in the discount rate to 6 percent. In taking this
action, the Board approved the requests submitted by the Boards of Directors of
the Federal Reserve Banks of Boston, New York, Philadelphia, Cleveland,
Richmond, Atlanta, Chicago, St. Louis, Minneapolis, Dallas, and San Francisco.
greetz nuessa
Boxenbauer 
