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

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

Digitally Transforming Data and Processes With Product Lifecycle Management

Oct. 29, 2023
Manufacturers face increasing challenges in product development as they strive to consistently deliver improved results. Discover how industry leaders are improving time-to-market...

Smarter Savings for Manufacturers - Guide

Sept. 12, 2023
Enhance your service experiences and boost revenue while reducing costs. Learn how one platform can help your business be more agile and productive in today's market.

Digitally Transforming Data and Processes With Product Lifecycle Management

Oct. 29, 2023
Manufacturers face increasing challenges in product development as they strive to consistently deliver improved results. Discover how industry leaders are improving time-to-market...

Voice your opinion!

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