WASHINGTON-As a number of credit union economists had predicted, the Federal Open Market Committee raised the federal funds rate target by a quarter of a percent to 1.25%. "The Committee believes that, even after this action, the stance of monetary policy remains accommodative and, coupled with robust underlying growth in productivity, is providing ongoing support to economic activity," the FOMC statement read. The monetary policy group noted the continued output expansion and improved labor market. "Although incoming inflation data are somewhat elevated, a portion of the increase in recent months appears to have been due to transitory factors," the statement continued. It concluded, "With underlying inflation still expected to be relatively low, the Committee believes that policy accommodation can be removed at a pace that is likely to be measured. Nonetheless, the Committee will respond to changes in economic prospects as needed to fulfill its obligation to maintain price stability." The FOMC is not scheduled to meet in July. NAFCU Senior Economist Jeff Taylor has said he expects the rates to be raised as much as 50 basis points in August.