Fed Lifts Rates for Fourth Time This Year By Glenn Somerville WASHINGTON (Reuters) - The Federal Reserve on Wednesday nudged U.S. interest rates up a quarter percentage point for the fourth time this year, citing healthier job markets and indicating it will press on with a rate-rise campaign. "Output appears to be growing at a moderate pace despite the rise in energy prices, and labor market conditions have improved," the policy-setting Federal Open Market Committee said in a statement announcing its decision. The unanimous vote by the panel moves the benchmark federal funds rate -- which affects credit costs throughout the economy -- to 2 percent from 1.75 percent. The Fed began to lift short-term credit costs in June from a rock-bottom 1 percent and said on Wednesday it expected to be able to keep on a "measured" course that has seen it raise rates at each of its past four meetings. With the economy showing signs of improvement, the central bank is widely expected to do so again at the next meeting on Dec. 14. "With underlying inflation expected to be relatively low, the committee believes that policy accommodation can be removed at a pace that is likely to be measured," the FOMC said, using the coded language it employs to foreshadow small but steady rate increases. That FOMC statement largely echoed the previous one on Sept. 21. "The key point is the obvious, which is not much has changed," said economist Stephen Stanley of RBS Greenwich Capital in Greenwich, Connecticut. "As a result ... it supports our feeling they will move again in December. There's no signal here of a change in their stance." A Reuters poll of Wall Street top economists conducted after the Fed meeting found 13 of 20 dealers expect another increase on Dec. 14, when policy-makers meet again. The latest hike follows Friday's Labor Department report, which showed a surprisingly large increase of 337,000 jobs last month, a reassuring indication of the economy's vigor. The Fed also boosted the largely symbolic discount rate to 3 percent and underlined it still considered rates to be low enough to encourage borrowing and spending. "The committee believes that, even after this action, the stance of monetary policy remains accommodative and, coupled with robust underlying growth in productivity, is providing ongoing support to economic activity," it said.     Continued ... Quelle "Fed Lifts Rates for Fourth Time This Year" : reuters.com Main page for "Fed Lifts Rates for Fourth Time This Year"