The Federal Open Market Committee raised the target rate for federal funds an expected 25 basis points to 3.00%. The discount rate also was raised 25 basis points to 4.00%.

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

Today's press release from the Fed continued to contain a comment suggesting that rates could be raised again. "The Committee believes that, even after this action, the stance of monetary policy remains accommodative ..." The text also continued to mention that "the Committee believes that policy accommodation can be removed at a pace that is likely to be measured."

In a more forthright comment on inflation than made in the past, the press release indicated "Pressures on inflation have picked up in recent months and pricing power is more evident."

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

U.S. Monetary Policy: An Introduction from the Federal Reserve Bank of San Francisco can be found here.