It has been more than three months since the Federal Open Market Committee (FOMC) raised the intended federal funds rate from 5 1/4% to 5 1/2%. This rate hike was the first policy move in 14 months and the first increase in more than two years. By taking this action, the FOMC served notice that it stood ready to address incipient inflationary pressures.
Suggested citation: “Monetary Policy,” Federal Reserve Bank of Cleveland, Economic Trends, no. 97-07, pp. 02-04, 07.01.1997.