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Fed Kicks Up Rates, Signals More Ahead With Economy Fine; 9th Straight Hike To 3.25%; Stocks, bond yields drop as upbeat policy-makers depress Wall St.'s mood.(A)

Investor's Business Daily

| July 01, 2005 | COPYRIGHT 2003 Investor's Business Daily, Inc. (Hide copyright information)Copyright

Byline: KIRK SHINKLE

Fed Chairman Alan Greenspan and his plan for "measured" interest rate hikes celebrated a one-year anniversary Thursday.

It included the kind of sentiment one would expect from a long-term relationship: optimism, but few surprises.

The Federal Reserve voted unanimously to raise the fed funds rate by 25 basis points to 3.25% at the end of its two-day meeting.

It's the ninth straight quarter-point hike, and the Fed signaled in its post-meeting statement that more are coming.

The Fed said keeping inflation at bay remains its key focus in an economy it sees as relatively healthy.

"Although energy prices …

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