Fed ups key rate to highest level since 2001

The Federal Reserve on Tuesday afternoon raised a key interest rate to its highest level in more than four years. The Fed increased its target for the federal funds rate, the interest that banks charge each other, to 4 percent from 3.75 percent, where it had been since Sept. 20. This is the 12th straight quarter-point increase since the Fed started raising interest rates in June 2004. more [Washington Post]