COMMENTARY The Federal Reserve boosted short-term interest rates on Aug. 16, causing a rally in the bond market. Traders were pleased by the decision to hike the federal funds rate by half a percentage point, in the view that the Fed was determined to keep inflation in check. After the action was announced, yields of 30-year Treasuries fell from 7.50% to 7.36%. The Fed's action was appreciated by the stock market as well, and the Dow Jones industrial average climbed 24 points. The dollar fell during the week.
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