After that, the Governor said, "target rates" from 1992 to 1998 would also limit annual increases to 5 percent.
If so, the Fed would cut its target rate more than now anticipated, and market rates could fall sharply.
This is a far from ideal measure but it can be used to compare performance over time and to establish target rates of return.
This target rate is reflected in the name of the website Barcelona30.com.
The interest rate is 1.5 percentage points over the target rate then for federal funds, now 5.25 percent.
Your target rate may be different from a person who does not have heart disease.
A4 China raised its target rate for economic growth to 9 or 10 percent.
Then you arrange your price structure so as to achieve these target rates of return.
The Fed had cut the target rate by a quarter-point at its last regular meeting 16 days ago.
Though unstated, it's likely that the target rate for inflation has been raised.
The Fed raised its benchmark Federal funds target rate three times last year in quarter-point increments, to 5.5 percent.
"Right now yields on everything from a 10-year note down to a three-month bill are below the 6 percent Federal funds target rate," Mr. Hale said.
The Fed raised the main rate it controls, the Federal funds target rate on overnight loans among banks, to 5.25 percent from 5 percent.
The increase in the overnight lending rate between banks, known as the Federal funds target rate, had been expected by economists and investors for weeks.
The Fed lowered its Federal funds target rate, or the rate banks charge each other for overnight loans, by 25 basis points, to 5.75 percent.
That would bring the benchmark Federal funds target rate to 5 percent.
The central bank raised the Federal funds target rate by a quarter of a percentage point, to 5.50 percent.
Many economists think the Fed is likely to raise its Federal funds target rate by a quarter-point this month, to 5.5 percent.
The Fed last changed rates in March 1997, when it raised the short-term Federal funds target rate to 5.5 percent from 5.25 percent.
"It is my expectation that the central bank will raise the Federal funds target rate to 6 percent from its current 5.50 percent," Mr. Johnson said.
