Fed - Interest Rates

The Federal Reserve Board raised a key interest rate a quarter of a point today, attempting to forestall inflation and keep the economic expansion from overheating. The Federal Funds rate is now at five-percent. The move was expected. But many investors were surprised by the Fed's neutral stance towards future interest rate hikes. The board had been expected to lean towards a need for further tightening. NPR's Jim Zarroli reports.



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