Target for Federal Funds Rate Raised by 25 Basis Points; Discount Rate Increased
June 30, 2005
Circular No. 11716

To All Depository Institutions and Others Concerned
in the Second Federal Reserve District:

The Federal Open Market Committee (FOMC) today raised its target for the federal funds rate by 25 basis points, to 3.25 percent. In addition, the Board of Governors of the Federal Reserve System approved a 25-basis-point increase in the discount rate, to 4.25 percent.

Voting for the FOMC monetary policy action were: Alan Greenspan, Chairman; Timothy F. Geithner, Vice Chairman; Susan S. Bies; Roger W. Ferguson, Jr.; Richard W. Fisher; Edward M. Gramlich; Donald L. Kohn; Michael H. Moskow; Mark W. Olson; Anthony M. Santomero; and Gary H. Stern.

The Board’s discount rate action was taken at the requests of the boards of directors of the Federal Reserve Banks of  Boston, New York, Philadelphia, Cleveland, Richmond, Atlanta, Chicago, St. Louis, Minneapolis, Kansas City, Dallas and San Francisco.

Press release (FOMC statement) OFFSITE