Gradual Rate Hikes

Alan Greenspan said Federal Reserve officials still believed they could begin boosting short-term interest rates at a "measured" pace. The first increase is widely expected when the Fed's policymaking Open Market Committee meets June 29 and 30, and rates may be raised by about .25 percent. This is part of the "gradual rate hike" that's been referred to in recent weeks, and bear in mind that banks usually anticipate these increases in advance of action by the Federal Reserve, but you may well continue to see more increases before the end of the year.