Date:16/12/2004 URL: http://www.thehindu.com/2004/12/16/stories/2004121603481702.htm

Business - Briefly

FED raises interest rates

WASHINGTON, DEC. 15. The Federal Reserve raised short-term interest rates on Tuesday for the fifth time this year, and it suggested that more rate increases are necessary in the months ahead. As expected, the central bank raised the federal funds rate on overnight loans by a quarter-point, to 2.25 per cent, and reiterated its intention to raise borrowing costs at a "pace that is likely to be measured.''