Fed Raises Rate Another Quarter-Point

WASHINGTON (AP) — The Federal Reserve, keeping a watchful eye on the impact of surging oil prices, raised a key interest rate by another quarter-point on Thursday.

The action pushed the federal funds rate up to 3.25 percent. It marked the ninth increase in the interest that banks charge each other on overnight loans and left this benchmark rate at its highest level since August 2001. When the Fed started its credit tightening campaign a year ago, the funds rate had been at a 46-year low of 1 percent.

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Have a great 4th of July weekend!

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