(February 2 – 15:00 ET) – The U.S. Federal Open Market Committee has raised interest rates by 25 basis points. The increase takes the federal funds rate to 5.75%, and the discount rate to 5.25%.

The move surprised no one in the financial community, although markets sold off slightly following the news.

“The Committee remains concerned that over time, increases in demand will continue to exceed the growth in potential supply, even after taking account of the pronounced rise in productivity growth,” the FOMC said in its policy statement, indicating that it remains worried about inflation.

“The Committee believes the risks are weighted mainly toward conditions that may generate heightened inflation pressures in the foreseeable future.”