Circular
Target for Federal Funds Rate Raised by 25 Basis Points; Discount Rate Increased
August 9, 2005
Circular No. 11725

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

The Federal Open Market Committee raised its target for the federal funds rate by 25 basis points to 3.5 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; Donald L. Kohn; Michael H. Moskow; Mark W. Olson; Anthony M. Santomero; and Gary H. Stern.

In a related action, the Board of Governors unanimously approved a 25-basis-point increase in the discount rate to 4.5 percent. In taking this action, the Board approved the requests submitted by 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)