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Fed Raises Key Rate to 3.25% For Ninth Increase in a Year





The bond market responded by moving long-term rate in the opposite direction. Still a condundrum for Mr. Greenspan.

From Wall Street Journal:

The statement was almost identical to that released after its May 3 meeting, with the only change being a more upbeat assessment of the current economy. "Although energy prices have risen further, the expansion remains firm and labor market conditions continue to improve gradually," it said. On May 3, it had said spending growth had "slowed somewhat." Thursday, it also said "pressures on inflation have stayed elevated, but longer-term inflation expectations remain well contained," a slightly different phrasing from its May 3 assessment that pressures on inflation had "picked up."

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