Fed Hikes Target Funds Rate 25bps

The Federal Open Market Committee has raised its target for the federal funds rate 25 basis points to 5% and issued an accompanying statement indicating that it "sees growth as likely to moderate to a more sustainable pace, partly reflecting a gradual cooling of the housing market."The FOMC's comments indicate that "a) it may pause in June or soon thereafter, b) any pause should not be viewed as necessarily the end of the rate cycle, and c) there is a clear bias toward further tightening," according to a report by Stephen Stanley, chief economist at RBS Greenwich Capital. The Fed can be found on the Web at http://www.federalreserve.gov.