The press release on FOMC decisions follows a standard form. The first paragraph states the decision. The next two paragraphs summarize the Fed's economic outlook, interpret the decision, and give the main reasons behind it.

The key decision is whether to change the target for the federal funds rate. Changes are described in basis points. There are 100 basis points in one percentage point. This means, for example, that if the FOMC increases its target interest rate from 1% to 1.5%, there would be an increase of 50 basis points, or one half of a percentage point.

According to the press release, the type of inflation that concerns the FOMC is:

Select one:

A. commodity inflation

B. currency inflation

C. demand-pull inflation

D. cost-push inflation

FOMC Policy Statement The Federal Open Market Committee decided today to keep its target for the federal funds rate at 5-1/4 percent. Recent indicators have suggested somewhat firmer economic growth, and some tentative signs of stabilization have appeared in the housing market. Overall, the economy seems likely to expand at a moderate pace over coming quarters Readings on core inflation have improved modestly in recent months, and inflation pressures seem likely to moderate over time. However, the high level of resource utilization has the potential to sustain inflation pressures. The Committee judges that some inflation risks remain. The extent and timing of any additional firming that may be needed to address these risks will depend on the evolution of the outlook for both inflation and economic growth, as implied by incoming information. Voting for the FOMC monetary policy action were: Ben S. Bernanke, Chairman; Timothy F. Geithner, Vice Chairman; Susan S. Bies; Thomas M. Hoenig Donald L. Kohn; Randall S. Kroszner, Cathy E. Minehan; Frederic S. Mishkin; Michael H. Moskow, William Poole; and Kevin M. Warsh