From PR Newswire. The US Federal Reserve System this afternoon raised its target for the inter-bank overnight loan rate, commonly known as the "federal funds rate" twenty-five basis points to 5.00%. Fed Rate Action Commentary From Swiss Re US Chief Economist Wednesday May 10, 2:58 pm ET http://biz.yahoo.com/prnews/060510/nyw172.html?.v=29 The Fed concurrently raised the rate it charges for direct loans to member banks by twenty-five basis points to 6.00%. "Federal Reserve Raises Key Interest Rate" 10 May 2006 http://www.kwtx.com/home/headlines/2778131.html I have mentioned elsewhere on this board my belief that this latest in a series of consecutive rate hikes is intended to avert a sell-off of the dollar in the foreign exchange market. The dollar is currently down against the euro 0.41% at E1 = $1.281. The dollar is currently down against the pound 0.01% at L1 - $1.866. The price of gold is now up $6.30/oz to $706.50/oz, close to its 25 year high http://www.netdania.com/QuoteList.asp The Fed issued a confusing, ambiguous statement as to whether more such hikes will be forthcoming.