The Federal Reserve raised the target range for the federal funds rate to 2% to 2-1/4% in view of realized and expected labor market conditions and inflation.
According to the minutes from the FOMC’s recent meeting, some attendees judged that another increase in the fed funds rate was or would soon be warranted, with a couple advocating an increase at this meeting.
At their most recent meeting, Federal Reserve policymakers said they expect economic conditions will evolve in a manner that will warrant only gradual increases in the fed funds rate.
Bloomberg reported that Fed chairman Ben Bernanke called for keeping accommodation, although minutes of the FOMC’s June meeting showed members debating whether to stop bond buying by the Fed in 2013.
In a news release, the Federal Reserve said it will maintain the current federal fund rate and continue bond purchases.
Bloomberg reported that Federal Reserve chairman Ben S. Bernanke has something to tout before Congress in hearings this week: job growth in the auto and housing industries.