Fed raises rates again Greenspan & Co. boost short-term rates to 4.25% but signal that an end to rate hikes is in sight. December 13, 2005: 2:15 PM EST
NEW YORK (CNNMoney.com) - The Federal Reserve raised the target for a key short-term interest rate Tuesday by a quarter of a percentage point. The rate hike was widely expected by investors and economists as the economy continues to show signs of strength.
But the central bank also modified its closely-watched policy statement, a move that many analysts believe is a sign that the Fed may finally be nearing an end to its campaign of boosting interest rates.
The Fed has increased rates by a quarter of a point at its past thirteen meetings, dating back to June 2004. The federal funds now rate stands at 4.25 percent, its highest level since March 2001. Banks use the federal funds rate in order to determine overnight lending rates, which impact how much consumers and businesses pay for various types of loans.
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