Fed in sixth rate hike

The Federal Reserve today raised interest rates for the sixth time since last June as policy-makers continued their efforts to make sure a strengthening US economy does not trigger inflation.

The Fed announced that it was raising its target for the federal funds rate, the interest that banks charge each other, by a quarter point to 2.5%. Before the Fed began tightening credit last June, the funds rate had been at a 46-year low of 1%.