The monetary policy-making committee of the Federal Reserve Board has once again raised the federal funds rate by 25 basis points, noting that inflation concerns have persisted despite the gradually cooling housing market and other signs that economic growth is moderating."Ongoing productivity gains have held down the rise in unit labor costs, and inflation expectations remain contained," the Federal Open Market Committee said June 29. "However, the high levels of resource utilization and of the prices of energy and other commodities have the potential to sustain inflation pressures." Stephen Stanley, chief economist at RBS Greenwich Capital, said the Fed in its statement "is telling all the pundits who are squawking about overtightening that 'Yeah, we know that the economy may be slowing down, but it doesn't matter until we make sure that inflation is under control'." The Fed can be found on the Web at http://www.federalreserve.gov.

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