Fed raises interest rates

THE Federal Reserve raised US short-term interest rates by another quarter point yesterday, a move that was no surprise to Wall Street.

The Fed also said it expected to keep boosting rates at a measured pace, a possible sign that chairman Alan Greenspan and other Fed members are not worried about inflation even though oil prices recently hit a record high.

The central bank’s Open Market Committee lifted the federal funds rate, which banks use to determine their own lending rates, from 2.5% to 2.75%, its highest level since September 2001.