The Federal Open Market Committee, headed by Federal Reserve Chair Alan Greenspan, today raised its target for the federal funds rate by 25 basis points to 4.25 percent.

The widely expected move is the 13th time in a row the Federal Reserve has raised interest rates. The bank rate now at its highest level in four and a half years.

“Despite elevated energy prices and hurricane-related disruptions, the expansion in economic activity appears solid,” the Fed said in a statement. “Core inflation has stayed relatively low in recent months and longer-term inflation expectations remain contained.”

Framed in the always-cautious language of the Fed, the comments appear to suggest that the institution may be satisfied that its chief concern, containing inflation, is under control. This in turn suggests that the series of rate hikes might be coming to an end, a theory held by many industry observers.

The statement also seemed to be hinting that a few more rate increases were still in the works: “Nevertheless, possible increases in resource utilization as well as elevated energy prices have the potential to add to inflation pressures.

“The Committee judges that some further measured policy firming is likely to be needed to keep the risks to the attainment of both sustainable economic growth and price stability roughly in balance,” the statement said. “In any event, the Committee will respond to changes in economic prospects as needed to foster these objectives.”


Send tips or a Letter to the Editor to or call (510) 658-9252, ext. 140.

Show Comments Hide Comments
Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Thank you for subscribing to Morning Headlines.
Back to top
Only 3 days left to register for Inman Connect Las Vegas before prices go up! Don't miss the premier event for real estate pros.Register Now ×
Limited Time Offer: Get 1 year of Inman Select for $199SUBSCRIBE×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription