Financial Times FT.com

Markets rally after statement from Fed

By Krishna Guha in Washington and Jennifer Hughes in New York

Published: June 29 2006 19:16 | Last updated: June 30 2006 06:46

The Federal Reserve fuelled a rally in global markets after it issued an unexpectedly nuanced statement to accompany a quarter-point rise in interest rates to 5.25 per cent on Thursday.

The Fed hardened its language on inflation and signalled a bias to raise rates further, but fell short of suggesting a cast iron intention to raise rates again at the next policy meeting on August 8.

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