Highlights
The Federal Reserve offered no signals of change in today's statement, repeating it will remove policy accommodation at a "measured pace," repeating that long-term inflation expectations remain "well contained," and repeating that conditions in the labor market are improving "gradually."

The Fed raised its federal funds target, as expected, by 25 basis points to 3.25% -- and there's every indication that the Fed expects to raise rates by another 25 basis points at its next meeting on Aug. 9. In new wording since its May statement, the Fed described the expansion as "firm" and said inflation pressures have stayed "elevated."

The clearer prospect of further rate increases gave a quick boost to the dollar and hurt bonds. Higher interests rates, at a time when inflation is quiet, are a minus for the stock market.

The following is the main part of the statement:

"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. Although energy prices have risen further, the expansion remains firm and labor market conditions continue to improve gradually. Pressures on inflation have stayed elevated, but longer-term inflation expectations remain well contained.

"The Committee perceives that, with appropriate monetary policy action, the upside and downside risks to the attainment of both sustainable growth and price stability should be kept roughly equal. With underlying inflation expected to be contained, 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."

2005 Release Schedule

Released On: 2/2 3/22 5/3 6/30 8/9 9/20 11/1 12/13 Released For: Jan Feb Apr May Jul Aug Oct Nov