男女羞羞视频在线观看,国产精品黄色免费,麻豆91在线视频,美女被羞羞免费软件下载,国产的一级片,亚洲熟色妇,天天操夜夜摸,一区二区三区在线电影
  Home>News Center>World
         
 

Fed raises rates, pledges gradual course
(Agencies)
Updated: 2004-07-01 08:46

The Federal Reserve raised U.S. interest rates for the first time in four years on Wednesday, boosting them a quarter percentage point in what likely is the first of several rises to keep inflation at bay.


The Federal Reserve raised U.S. interest rates for the first time in four years on June 30, 2004, boosting them a quarter percentage point in the first of a likely series of increases to keep inflation at bay. The decision by the U.S. central bank's policy-setting Federal Open Market Committee moves the benchmark federal funds rate -- which affects credit costs throughout the economy -- to 1.25 percent. Federal Reserve chairman Alan Greenspan seen during testimony on Capitol Hill in this April 21, 2004 file photo. [Reuters]
The unanimous decision by the U.S. central bank's policy-setting Federal Open Market Committee moves the benchmark federal funds rate -- which affects credit costs throughout the economy -- to 1.25 percent.

The widely expected move formally ends a 13-step easing cycle that began in 2001 and took the key overnight rate to a 1958 low of 1 percent.

With a pick-up in economic momentum that has created 1.2 million jobs this year and ushered in higher prices, the Fed has embarked on an effort to take away some of the stimulus of cheap credit in gradual stages this year and next.

In a statement issued after its two-day meeting, the central bank repeated a pledge to follow a "measured" pace, which markets have taken to imply a course of smaller, quarter-point rate increases rather than larger ones.

"With underlying inflation still expected to be relatively low, the committee believes that policy accommodation can be removed at a pace that is likely to be measured," the Fed said.

"Nonetheless, the committee will respond to changes in economic prospects as needed to fulfill its obligation to maintain price stability," it added in new wording that left it room to move more aggressively if needed.

The Fed also increased the largely symbolic discount rate a quarter point to 2.25 percent.

SIGHS OF RELIEF

Analysts said policy-makers had struck the right note -- balancing reassurance that no flare-up in inflation was near with a warning they were on guard lest one emerge.

"This is a predictable, user-friendly kind of statement that tells the market that nothing will happen soon to accelerate the pace of the tightening process," said economist Dana Johnson of Banc One Capital Markets.

Higher rates may weigh on debt-heavy consumers but should prove a plus for savers and those living on fixed incomes.

Several U.S. banks raised their prime lending rates -- those offered to their top customers -- a quarter point to 4.25 percent as the Fed action rippled through commercial markets.

The Bush administration played down any worry that costlier credit could cloud the rosy economic outlook it wants to highlight going into November's presidential election.

"That's not something at this point that is a concern," said White House spokesman Scott McClellan. "It's just a reflection that the economy is growing stronger and that people are finding work."

Former President George H.W. Bush blamed his 1992 election loss partly on Fed Chairman Alan Greenspan, for failing to cut interest rates quickly enough to spur growth.

Relations seem friendly between Greenspan and the current President Bush, who has maintained a resolutely hands-off approach to the central bank.

Treasury Secretary John Snow said Wednesday the administration respects Fed independence and shares its goals of growth with low inflation.

Fed officials' assurances that they do not expect a repetition of the kind of aggressive tightening seen in 1994 helped financial markets prepare by "pricing in" expected rises and to face Wednesday's rate rise with equanimity.

Prices for bellwether 10-year Treasury notes rose 27/32 of a point and the yield dipped to 4.58 percent.

Stocks strengthened modestly, with the Dow Jones industrial average up 22.05 points to 10,435.48. The high tech-heavy Nasdaq composite index rose 12.86 to 2,047.79.

ONLY A FIRST STEP

A Reuters poll of top Wall Street firms after the Fed announcement found 21 of 22 expect another quarter-point hike at the next scheduled policy meeting on August 10.

The median forecast among participants for the fed funds rate by the end of the year was 2 percent, rising to 3.75 percent by the end of 2005.

Soaring energy costs have pumped up prices for high-profile goods like gasoline, but broader government gauges like the Consumer Price Index also have been on the rise.

In its statement, the central bank said while inflation data were "somewhat elevated," part of this increase seems due to transitory factors.

Economist Richard Yamarone of Argus Research Corp. in New York said Wednesday's rate rise was from an exceptionally low level, and that it, and those to follow, "should not be interpreted as an attempt to brake an out-of-control economy.

"These series of rate hikes are more appropriately analogous to taking the foot off the accelerator," he added.

One thing inflation-wary policy-makers will need to watch is productivity, or hourly output per worker, which has been robust enough to largely contain wage costs.

As hiring picks up, however, some increase in wages -- the lions' share of production outlays -- seems inevitable.

In the first quarter of this year, nonfarm business productivity grew at a 3.8 percent annual rate. That was not enough to offset a 4.6 percent rise in hourly compensation, and unit labor costs rose.



 
  Today's Top News     Top World News
 

Beijing ready to talk with Taipei on 'three links'

 

   
 

China to lift restrictions on foreign banks

 

   
 

China opposes Japan's sea gas decision

 

   
 

New licensing law streamlines bureaucracy

 

   
 

Beijing's heritage status to be questioned

 

   
 

Fed raises rates, pledges gradual course

 

   
  US says attacks Zarqawi safehouse in Falluja
   
  Iraq to charge Saddam with war crimes
   
  Qatar convicts 2 Russian agents
   
  Not to everyone's taste, Rome changes colors
   
  Saddam lawyer says trial mockery of justice
   
  New Pakistan PM takes office
   
 
  Go to Another Section  
 
 
  Story Tools  
   
  Related Stories  
   
U.S. cuts rate to 45-year low to spark recovery
  News Talk  
  A "sovereign" Iraq? Do you believe it?  
Advertisement
         
主站蜘蛛池模板: 奈曼旗| 红原县| 金湖县| 屯门区| 金山区| 兖州市| 郧西县| 安乡县| 锡林郭勒盟| 突泉县| 雷波县| 岢岚县| 庆元县| 高州市| 金沙县| 浑源县| 绩溪县| 邹城市| 沐川县| 宜州市| 武山县| 曲水县| 武穴市| 乌审旗| 清河县| 若尔盖县| 确山县| 渑池县| 象山县| 武汉市| 石家庄市| 吴川市| 罗平县| 磐安县| 通城县| 韶山市| 乌兰县| 卓尼县| 陇西县| 张掖市| 马尔康县| 年辖:市辖区| 和顺县| 和平区| 手游| 阳山县| 会昌县| 洮南市| 台中县| 鹰潭市| 两当县| 南开区| 鹤岗市| 济宁市| 绿春县| 台北市| 太和县| 蛟河市| 赤壁市| 潜江市| 建湖县| 泗阳县| 余江县| 兰西县| 寻甸| 东兴市| 鹤峰县| 临安市| 桑日县| 翼城县| 凉山| 武宁县| 崇信县| 吴江市| 和静县| 东宁县| 舟山市| 紫金县| 冷水江市| 定日县| 衡阳市| 长沙市|