Advertisement
YOU ARE HERE: LAT HomeCollections

Federal Reserve Statement

September 22, 2004|From Times Wire Services

Here is the text of the Federal Reserve's statement on interest rates:

The Federal Open Market Committee decided today to raise its target for the federal funds rate by 25 basis points [one quarter-point] to 1.75%.

The committee believes that, even after this action, the stance of monetary policy remains accommodative and, coupled with robust underlying growth in productivity, is providing ongoing support to economic activity.

After moderating earlier this year partly in response to the substantial rise in energy prices, output growth appears to have regained some traction, and labor market conditions have improved modestly.

Despite the rise in energy prices, inflation and inflation expectations have eased in recent months.

The committee perceives the upside and downside risks to the attainment of both sustainable growth and price stability for the next few quarters to be roughly equal. With underlying inflation expected to be relatively low, the committee believes that policy accommodation can be removed at a pace that is likely to be measured.

Nonetheless, the committee will respond to changes in economic prospects as needed to fulfill its obligation to maintain price stability.

Advertisement
Los Angeles Times Articles
|
|
|