For the first time in four years, the twelve members of the Federal Reserve?s Federal Open Market Committee yesterday voted unanimously to raise the interest rate from one percent to 1.25 percent. Indicating they may raise rates again depending on the rate of inflation, the Federal Reserve stated that they are taking this action to control inflation, not to slow the economy.
See "Fed Lifts Key Rate To Curb Inflation", Nell Henderson, The Washington Post, June 30, 2004