Inflation and Prices
On March 25, the Federal Open Market Committee (FOMC) took a small and perhaps cautious step toward monetary restraint by raising the federal funds target by 1/4 percentage point, it's first overt policy action since January 1996. In a press release, the Committee described the rate hike as a prudent step aimed at prolonging the business expansion by maintaining the existing low inflation rate through the end of this year and next.
Suggested citation: “Inflation and Prices,” Federal Reserve Bank of Cleveland, Economic Trends, no. 97-04, pp. 08-09, 04.01.1997.