Immediately after its March 25 meeting, the Federal Open Market Committee (FOMC) of the Federal Reserve System announced that it had "decided to tighten money market conditions slightly, expecting the federal funds rate to rise 1/4 percentage point to around 5 1/5 percent." This was the Committee's first policy move in almost 14 months and the first increase since January 1995.
Suggested citation: “Monetary Policy,” Federal Reserve Bank of Cleveland, Economic Trends, no. 97-04, pp. 02-04, 04.01.1997.