Federal reserve raises key interest rate
01/11/2005 - 19:30:27The Federal Reserve, still concerned about US inflation, raised a key interest rate today to the highest level in more than four years and signalled more increases were likely.
The Fed announced it was pushing its target for the federal funds rate, the interest that banks charge each other, to 4% from 3.75%, where it had been since the Fed’s last interest-rate meeting on September 20.
It marked the 12th consecutive quarter-point increase since the Fed began gradually raising rates in June 2004 to make sure that a growing economy did not generate higher inflation.
