RATES AND GDP GROWTH

The Fed steadily raised interest rates from 1% in June 2004 to 5.25% in June 2006, hikes that at least partly contributed to a slower growing economy. This time, the Fed aims to raise rates at about half that pace.

GDP growth

2004

3.8%

2005

3.3%

2006

2.7%

2007

1.8%