Fed Raises Rates For 12th Straight Time
Federal Funds Rate Goes To 4 Percent
POSTED: Tuesday, November 1, 2005
UPDATED: 2:31 pm EST November 1,
2005
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NEW YORK -- The Federal Reserve pushed interest rates higher again Tuesday -- for the 12th straight time.The fed boosted a key interest rate by a quarter-point. That pushed the federal funds rate from 3.75 percent, where it has been since the last meeting on Sept. 20, to 4 percent.That's the highest level for the funds rate in more than four years. The federal funds rate is the interest that banks charge each other and generally determines the course of consumer rates -- including those used for home mortages. When the Fed started raising the funds rate in June 2004 it stood at a 46-year low of 1 percent. In a brief statement explaining Tuesday's action, the Fed retained language it has been using, which said it believes future interest rates can occur "at a pace that is likely to be measured."That phrase is seen as a signal that the Fed plans to keep raising rates at a gradual pace of quarter-point moves at coming meetings.Fed Chairman Alan Greenspan will leave the post Feb. 1.President George W. Bush has named Ben Bernanke to replace Greenspan.Bernanke's Senate confirmation is likely later this month.Most analysts believe that Bernanke is likely to keep the Fed on the rate-raising course set by Greenspan -- a course designed to keep inflation in check.
Previous Stories:
- October 24, 2005: Bernanke Picked To Be New Fed Chief
- October 20, 2005: 30-Year Mortgage Rates Hit 15-Month High
- October 19, 2005: Housing Market Shows No Signs Of Slowdown
- October 13, 2005: 30-Year Mortgage Rates Top 6 Percent
- October 6, 2005: Mortgage Rates Rise On Inflation Jitters
- September 29, 2005: Rates On 30-Year Mortgages Hit 5-Month High
- September 15, 2005: Mortgage Rates Inch Higher
- September 8, 2005: Rates On 30-Year Mortgages Hold Steady
- August 18, 2005: Mortgage Rates Ease Slightly
Distributed by Internet Broadcasting Systems, Inc. The Associated Press contributed to this report. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
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