Fed Expected to Raise Interest Rates on Tuesday

March 21, 2005 3:00 AM, EST

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he Federal Reserve’s Open Market Committee was expected to raise interest rates by another quarter-percentage point to 2.75% when it meets on Tuesday, Reuters reported.

The Fed has raised the federal funds rate by a quarter-point at six straight meetings.

Also known as the overnight bank-lending rate, it is the interest banks charge each other on overnight loans and the Fed's main lever for influencing the economy.

Analysts told the Associated Press the Fed's statement will be closely scrutinized for any signs the central bank believes inflation has become a larger threat to the economy.