The Federal Reserve’s Open Market Committee last week raised the target for the federal funds rate by 25 basis points to 5.25 percent, marking the 17th straight increase since June 2004. The federal funds target rate is the interest rate charged by banks when they borrow funds “overnight” from each other. The Fed cited elevated inflation and high energy costs as factors for the increase.

“Recent indicators suggest that economic growth is moderating from its quite strong pace earlier this year, partly reflecting a gradual cooling of the housing market and the lagged effects of increases in interest rates and energy prices,” the Fed said in a prepared statement.

The Fed also indicated the possibility of future interest rate increases, stating “Although the moderation in the growth of aggregate demand should help to limit inflation pressures over time, the Committee judges that some inflation risks remain. The extent and timing of any additional firming that may be needed to address these risks will depend on the evolution of the outlook for both inflation and economic growth, as implied by incoming information.”