-->

-->2:16pm 05/03/05 FOMC raises interest rates to 3% By Robert Schroeder

WASHINGTON (MarketWatch) - The Federal Open Market Committee increased its target for overnight interest rates by a quarter percentage point to 3% percent Tuesday. The increase in the federal funds rate was expected. The vote was unanimous. The committee once again concluded that its monetary policy stance remains accommodative and that rates could be increased"at a pace that is likely to be measured." The statement released by the FOMC left much of its March 22 statement in tact. The committee acknowledged slower growth."Recent data suggest that the solid pace of spending growth has slowed somewhat, partly in response to the earlier increases in energy prices," the committee said.