The Federal Open Market Committee has raised its target for the federal funds rate by 25 basis points, to 2%.The FOMC, a committee of the Federal Reserve Board, described output as moving at a "moderate pace," indicated that labor conditions have improved, and said "inflation and longer-term inflation expectations remain well contained." In reaction to the statement, RBS Greenwich Capital chief economist Steve Stanley said that "market participants may argue for awhile about whether the description of growth as 'moderate' is bullish or bearish." Mr. Stanley opined in an e-mail report that "'measured tightening' remains the operating principle" for the committee, although he noted that if future economic data contradict that statement, the committee's position on the short-term rates might change.

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