Subscribe to Money Magazine
CNN/MoneyWeb
News > Jobs & Economy
graphic
More Fed coverage
Fed statement on rates
Says U.S. output continues to expand, labor market conditions improved, further hikes "measured."
June 30, 2004: 2:43 PM EDT

NEW YORK (CNN/Money) - The Federal Reserve decided Wednesday to raise its target for the federal funds rate a quarter point to 1.25 percent. Following is the statement accompanying the central bank's decision:

 QUICK VOTE  
Was the Fed aggressive enough with its quarter-point rate hike?
  Yes
  No
  Too early to say

   View results

The Federal Open Market Committee decided today to raise its target for the federal funds rate by 25 basis points to 1-1/4 percent.

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 activity. The evidence accumulated over the intermeeting period indicates that output is continuing to expand at a solid pace and labor market conditions have improved. Although incoming inflation data are somewhat elevated, a portion of the increase in recent months appears to have been due to transitory factors.

The Committee perceives the upside and downside risks to the attainment of both sustainable growth and price stability for the next few quarters are roughly equal. With underlying inflation still expected to be relatively low, the Committee believes that policy accommodation can be removed at a pace that is likely to be measured. Nonetheless, the Committee will respond to changes in economic prospects as needed to fulfill its obligation to maintain price stability.

Voting for the FOMC monetary policy action were: Alan Greenspan, Chairman; Timothy F. Geithner, Vice Chairman; Ben S. Bernanke; Susan S. Bies; Roger W. Ferguson, Jr.; Edward M. Gramlich; Thomas M. Hoenig; Donald L. Kohn; Cathy E. Minehan; Mark W. Olson; Sandra Pianalto; and William Poole.

In a related action, the Board of Governors approved a 25 basis point increase in the discount rate to 2-1/4 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, Kansas City, Dallas and San Francisco.  Top of page




  More on NEWS
Awesome car options for first-time buyers
The richest Americans in history
What your favorite websites looked like 20 years ago
  TODAY'S TOP STORIES
Looking for a job? Try one of these cities
China's richest man bet his company's shares would fall
10 fantastic food festivals for 2015




graphic graphic