Fed Raises Federal Funds Rate Once Again

As expected, the Fed raised its federal funds rate by a quarter point to 1.75% today.  That action had the effect of raising the prime rate to 4.75%.  The federal funds rate is the rate at which member banks can borrow from the Fed overnight.  The prime rate is used as an index to determine home equity line rates and credit card rates.  The Fed's new chairman had his first post Open Market Committee news conference today.  The Dow lost 44 points on the news.