Circular
Target for Federal Funds Rate Raised by 25 Basis Points: Discount Rate Increased
September 21, 2004
Circular No. 11644

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 1.75 percent. In addition, the Board of Governors of the Federal Reserve System approved a 25 basis point increase in the discount rate, to 2.75 percent.

The FOMC’s statement is available on the Federal Reserve Board’s website.

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