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To: Spartex who wrote (30152)2/2/2000 2:27:00 PM
From: Spartex  Respond to of 42771
 
Fed raises key interest rates, sees inflation risk

WASHINGTON, Feb 2 (Reuters) - The Federal Reserve
cautiously raised key U.S. interest rates on Wednesday and
put financial markets on notice for further increases by
warning that inflation was the biggest threat to the booming economy.

In a statement after a policymaking meeting, the U.S. central bank said it had raised its target
for the federal funds rate on overnight loans to banks to 5.75 percent from 5.5 percent. To amplify the move it also raised its less-used discount rate, on direct loans to banks, to 5.25 percent from five percent.