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FED RAISES TARGET FOR FEDERAL FUNDS RATE TO 3.75 PERCENT The Federal Reserve's Open Market Committee raised the target for the federal funds rate by 25 basis points to 3.75 percent on Tuesday, marking the 11th straight increase since June 2004. The federal funds target rate is the interest rate charged by banks when they borrow funds "overnight" from each other. "The widespread devastation in the Gulf region, the associated dislocation of economic activity, and the boost to energy prices imply that spending, production, and employment will be set back in the near term," the Fed said in a prepared statement. "While these unfortunate developments have increased uncertainty about near-term economic performance, it is the Committee's view that they do not pose a more persistent threat. Rather, monetary policy accommodation, coupled with robust underlying growth in productivity, is providing ongoing support to economic activity." FED Press Release Posted by QiRealtyEditor at 10:23 AM

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