The Federal Reserve's monetary policy-setting arm has raised its target for the federal funds rate by 25 basis points, to 4.25%, and issued a statement that "despite elevated energy prices and hurricane-related disruptions, the expansion in economic activity appears solid."The Federal Open Market Committee said, "Core inflation has stayed relatively low in recent months and longer-term inflation expectations remain contained. Nevertheless, possible increases in resource utilization as well as elevated energy prices have the potential to add to inflation pressures." The FOMC also said it "judges that some further measured policy firming is likely needed to keep the risks to the attainment of both sustainable economic growth and price stability roughly in balance" and "will respond to changes in economic prospects as needed to foster these objectives." The Federal Reserve can be found online at http://www.federalreserve.gov.

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