FOMC Boosts Funds Rate As Expected

Aug. 9, 2005
It was no surprise when the Federal Open Market Committee (FOMC) raised the target federal funds rate to 3.5% from 3.25% on August 9. The 25-basis-point increase was widely anticipated by economists, manufacturers and other businesses. But will the FOMC ...

It was no surprise when the Federal Open Market Committee (FOMC) raised the target federal funds rate to 3.5% from 3.25% on August 9. The 25-basis-point increase was widely anticipated by economists, manufacturers and other businesses.

But will the FOMC continue gradually to raise the target rate, the interest banks charge each other on overnight loans, at its three remaining meetings this year? Chances are that Chairman Alan Greenspan and his colleagues will do exactly that. In a statement following Tuesday's increase, the panel noted "pressures on inflation have stayed elevated" and reiterated that the target rate can be raised "at a pace that is likely to be measured."

Popular Sponsored Recommendations

Empowering the Modern Workforce: The Power of Connected Worker Technologies

March 1, 2024
Explore real-world strategies to boost worker safety, collaboration, training, and productivity in manufacturing. Emphasizing Industry 4.0, we'll discuss digitalization and automation...

3 Best Practices to Create a Product-Centric Competitive Advantage with PRO.FILE PLM

Jan. 25, 2024
Gain insight on best practices and strategies you need to accelerate engineering change management and reduce time to market. Register now for your opportunity to accelerate your...

Transformative Capabilities for XaaS Models in Manufacturing

Feb. 14, 2024
The manufacturing sector is undergoing a pivotal shift toward "servitization," or enhancing product offerings with services and embracing a subscription model. This transition...

Shifting Your Business from Products to Service-Based Business Models: Generating Predictable Revenues

Oct. 27, 2023
Executive summary on a recent IndustryWeek-hosted webinar sponsored by SAP

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!