The Federal Open Market Committee raised the target rate for federal funds an expected 25 basis points to 2.75%. The discount rate also was raised 25 basis points to 3.75%.

The decision to raise rates the seventh time since last June was unanimous.

Today's press release from the Fed continued to contain a comment suggesting that rates could be raised again. "With underlying inflation expected to be contained, the Committee believes that policy accommodation can be removed at a pace that is likely to be measured."

With regard to prices the press release indicated "Though longer-term inflation expectations remain well contained, pressures on inflation have picked up in recent months and pricing power is more evident. The rise in energy prices, however, has not notably fed through to core consumer prices."

For the complete text of the Fed's latest press release please click here.

Paul Samuelson and Monetary Analysis from the Federal Reserve Bank of St. Louis can be found here.