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Fed Raises Rates, Gives Ben Bernanke Flexibility As Chairman Greenspan Exits; FOMC "May' Tighten Again; Odds favor March hike, but there's a host of data between now and then.(A)
Byline: KIRK SHINKLE
Goodbye Alan, hello Ben.
In his last day, Federal Reserve Chairman Alan Greenspan ended his 18-year tenure Tuesday with one more rate hike and a few parting words to give his successor some room to maneuver.
Fed policymakers voted unanimously to raise the benchmark fed funds target rate by a quarter-point to 4.5%, the 14th such move in as many meetings.
In its statement, officials saw a solid economy, despite some recent "uneven" data.
Poor fourth-quarter growth and December hiring aside, other data suggest the economy is doing quite well. Meanwhile, underlying inflation seems contained amid a few lurking price pressures.
So as accolades continue to rain on the outgoing chairman, economists and investors are looking ahead to his replacement, White House economist Ben Bernanke. He'll be sworn in Wednesday after Tuesday's Senate approval.
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