The Federal Reserve raised US interest rates today for an 11th straight time, saying Hurricane Katrina will provide only a temporary setback to the broad economy.
But one policy-maker dissented from the rate-rise vote, saying he preferred to hold rates steady.
The rate-setting Federal Open Market Committee voted 9 to 1 to increase the benchmark federal funds rate - charged on overnight loans between banks and intended to influence credit costs throughout the economy - a quarter of a percentage point to 3.75 per cent.
US short-term lending costs now stand at their highest level since June 2001, though market-set long-term rates remain low by historical standards.