The Federal Open Market Committee today raised the federal funds target rate 25 basis points, to 1.25%, from 1%.[@@]
Analysts say the change will help the insurance industry.
The U.S. benchmark rate is the overnight rate charged to commercial banks and other depository institutions.
The FOMC, which includes the heads of the Federal Reserve system, said in a statement 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."