At its most recent meeting, held on September 21, the Federal Open Market Committee (FOMC) raised the target federal funds rate 25 basis points (bp) to 1.75%, the third such increase since the record low of 1.00% was reached in June 2003. Many Federal Reserve officials have publicly stated that the federal funds rate remains accommodative. Market participants anticipate that the federal funds rate will rise; however, the timing and magnitude of the increase are uncertain.
Suggested citation: "Monetary Policy," Federal Reserve Bank of Cleveland, Economic Trends, no. 04-11, pp. 04-05, 11.01.2004.