Federal Reserve raises funds rate by 25 basis points

The Federal Open Market Committee decided today to raise its target for the federal funds rate by 25 basis points to 3-1/4 percent.

The Committee believes that, even after this action, the stance of monetary policy remains accommodative and, coupled with robust underlying growth in productivity, is providing ongoing support to economic activity. Although energy prices have risen further, the expansion remains firm and labor market conditions continue to improve gradually. Pressures on inflation have stayed elevated, but longer-term inflation expectations remain well contained.

The Committee perceives that, with appropriate monetary policy action, the upside and downside risks to the attainment of both sustainable growth and price stability should be kept roughly equal. With underlying inflation expected to be contained, the Committee believes that policy accommodation can be removed at a pace that is likely to be measured. Nonetheless, the Committee will respond to changes in economic prospects as needed to fulfill its obligation to maintain price stability.

Voting for the FOMC monetary policy action were: Alan Greenspan, Chairman; Timothy F. Geithner, Vice Chairman; Susan S. Bies; Roger W. Ferguson, Jr.; Richard W. Fisher; Edward M. Gramlich; Donald L. Kohn; Michael H. Moskow; Mark W. Olson; Anthony M. Santomero; and Gary H. Stern.

In a related action, the Board of Governors unanimously approved a 25-basis-point increase in the discount rate to 4-1/4 percent. In taking this action, the Board approved the requests submitted by the Boards of Directors of the Federal Reserve Banks of Boston, New York, Philadelphia, Cleveland, Richmond, Atlanta, Chicago, St. Louis, Minneapolis, Kansas City, Dallas, and San Francisco.

Source: Board of Governors of the Federal Reserve SystemRelease Date: June 30, 2005 For immediate release. 2005 Monetary policy more at Federal Reserve or Alan Greenspan

UPDATE: COALITION GROUND FORCES SECURE CRASH SITE

UPDATE: COALITION GROUND FORCES SECURE CRASH SITE

KABUL, Afghanistan – Coalition forces have secured the site where a helicopter crashed June 28 and are currently assessing the cause of the crash and the status of the 17 service members who were on board the MH-47 helicopter.

The MH-47 helicopter was transporting service members to support U.S. forces in contact with the enemy when it crashed.

Afghan National Army and Coalition forces remain actively engaged in Operation Red Wing, an effort to defeat terrorists operating in Kunar province. Forces are also in position to impede any enemy movement into or away from the crash site.

More information will be provided as it becomes available. -30-

Source; U.S. Central Command June 30, 2005, Release Number: 05-06-23, FOR IMMEDIATE RELEASE, NEWS RELEASE, HEADQUARTERS UNITED STATES CENTRAL COMMAND, 7115 South Boundary Boulevard, MacDill AFB, Fla. 33621-5101, Phone: (813) 827-5894; FAX: (813) 827-2211; DSN 651-5894

more at Afghanistan or Afghan National Army and Operation Red Wing