Bubble Wrap

Fed raises rate 1/4 point, as expected

In Fed raises rates in Bernanke’s first meeting, CNNMoney covers the Fed’s 15th consecutive hike.

The Federal Reserve raised a key short-term interest rate a quarter of a percentage point Tuesday and signaled that more rate hikes may be needed, disappointing some investors who thought the central bank was nearly through with its rate-hiking campaign.

The target for the federal funds rate is now 4.75 percent, the highest in five years. This overnight bank lending rate affects rates consumers pay on auto and home-equity loans, as well as other types of debt.