The Fed's Deft Rate-Hike Message

How Bernanke & one statementraised rates, soothed inflation hawks, and eased market fears with hints at a pause in further hikes

Despite some market chatter of a supersized 50 basis-point rate hike, the Federal Reserve did just as it had telegraphed at its June 28-29 policy meeting. The Federal Open Market Committee, the Fed's policy-setting arm, raised the Fed funds target by a quarter percent to 5.25%—the 17th consecutive hike in the current tightening cycle.

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