While a television news reporter might state that "today the fed raised the federal funds rate from 1 percent to 1.25 percent," a more precise account of the fed's action would be as follows:?
A more precise account would be that the Fed is going to engage in open market operations to decrease the money supply which will cause interest rates to rise.
"Today the Fed told its bond traders to conduct open-market operations in such a way that the equilibrium federal funds rate would increase to 1.25 percent"
