A、The high official inflation rate. B、The continuing economic growth. C、The stable commodity prices. D、The weak labor market. B新

The Federal Reserve has raised its federal funds rate by one-fourth of one percent. The move may have been small, but it marks the first time since late 2008 that the Federal Reserve has raised important interest rates that it controls. The federal funds rate, a rate paid by banks for short-term loans, is now one-half of one percent. The Federal Reserve Open Market Committee announced the change Wednesday in a statement on economic policy. The committee’s decision was based on a few factors. Economic growth is expected to continue in the US. Another reason to increase interest rates was the low official rate of inflation. The central bank has said its target inflation rate is two percent. It says that rate would help support employment and keep prices stable. However, inflation currently is not at the target rate, but below one percent.
1. How much has the federal funds rate been raised?
2. What factor was the committee’s decision based on?