News that the Federal Reserve will raise interest rates by one'fourth point did little to dampen the economic spirit, as Wall Street closed the June quarter solidly in the black. In a statement released after its two-day meeting, the Fed signaled its intent to raise rates gradually-by a quarter point each time-rather than in galloping jumps. "With underlying inflation still expected to be relatively low, the committee believes that policy accommodation can be removed at a pace that is likely to be measured," the Fed said. The Fed did, however, indicate its willingness to move more aggressively if inflation heats up faster than expected.
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