Todays Federal Reserve Announcements

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

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

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

The Fed issued a confusing, ambiguous statement as to whether more such hikes will be forthcoming.

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