The Federal Reserve raised its benchmark federal funds rate a quarter point to 2.0 percent on 10 November 2004, in a unanimous vote by the Federal Open Market Committee. It was the fourth increase since June, when policymakers began lifting rates from a 46-year floor of 1.0 percent.
The move came after October's jobs report showed the economy added 337,000 positions, a seven-month high. Markets had fully anticipated the decision; the Dow Jones index barely moved, closing down 0.01 percent.
The committee described output as growing at a moderate pace despite higher energy prices, with inflation well contained, and said policymakers would continue raising rates only gradually. Risks to growth and price stability appeared balanced.
The discount rate, at which the central bank lends to commercial banks, also rose, to 3.0 percent from 2.75 percent. Presidents of the Dallas and San Francisco Federal Reserve banks declined to join the formal request for that move, a possible signal of some internal hesitation about the tightening pace.
Economists expected additional increases at the December 14 meeting and in February 2005. Wells Fargo chief US economist Sung Won Sohn said the Fed was "hiking interest rates slowly and gradually" given remaining concerns about oil prices and geopolitical risks.
Historical summary. TurkishPress restated this AFP wire report, first published in November 2004, in its own words.