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Fed Raises Funds Rate a Quarter Point
Funds Mutual Vanguard By Freddie Mooche
Feb 2, 2005 (AXcess News) The Fed raised key interest rate a quarter of a point Wednesday which marked the Central Banks sixth rate hike for fed fund rates, bringing bank lending rates to 2.5 percent.The Fed fund rate increase came as no surprise to the market after the Central Bank' makers, led by Alan Greenspan, Chairman.
Funds Mutual Top The Federal Reserve raised the benchmark fed funds rate a quarter point Tuesday, marking the 7th consecutive raise in interest rates, in order to curb inflation.If you would like to receive late breaking business news covered by AXcess News then you need to subscribe. Membership is free.
Forecasting measured rate increases, the Fed has raised the fed fund rate six consecutive times to 2.5 percent so far with investors expecting it to continue nudging the fed fund rate another quarter point when the Fed's policy panel meets this week.
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The view of the Central Bank Committee appears to be unchanged from its earlier thinking when it began raising the Fed Fund rate, night loans. Though investors expect the Fed to continue raising rates, just when and how much remain a mystery.AdvertisementIf investors are looking for a crystal ball, the Chicago Board of Trade may be the place the start as traders were hedging up rate futures contracts for March and May, point hike in interest rates. June contracts remained quiet, term uncertainties.
Funds In Investing Mutual March 22, 2005 (AXcess News) New York - The Federal Reserve raised the benchmark fed funds rate a quarter point Tuesday, marking the 7th consecutive raise in interest rates, in order to curb inflation.The Fed raised the rate charged banks on over-night loans to 2.75 percent, signaling concern over the rising rate of inflation when it restated its intent to continue raising short-term interest rates at what it called a 'measured pace.'
The Fed's last rate change occurred last summer, when it hiked the funds rate for a 17th straight time.
Fidelity Funds Mutual The Federal Reserve released a statement following the rate hike saying, Though longer-term inflation expectations remain well contained, pressures on inflation have picked up in recent months and pricing power is more evident."
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Funds Load Mutual No Economists had been predicting that a slowing pace by the the Fed would widen rate hikes, but after Tuesday's warning by the Fed, those predictions went to the wayside with the market accepting that the Federal Reserve intended to continue raising short-term interest rates this year.
Funds Investment Traders concerned over the trade deficit and rising inflation are worried that the Fed could raise Fed Fund rates even more than a quarter of a point if inflation continues to show signs of a rising economy.Following the Fed's news, the Dow Jones Industrial Index closed down 94.88 points, or 0.90%, at 10,470.51. The NASDAQ fell 18.17 points, or 0.91%, closing at 1,989.34. And, the S&P 500 was off 1.02%, closing at 1,171.71.The benchmark 10-year treasury bond closed up 0.08% at 4.61% yield.
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