Market close: Fed raises rates, investors yawn

As expected, the Federal Reserve Board bumped short-term interest rates up one-quarter of a percent Wednesday, resulting in a rather languid reaction on Wall Street. The Nasdaq composite added 22 points to 4,073.96 while the Dow lost 38 points. The Fed raised the fed funds rate for overnight loans between banks to 5.75 percent from 5.50 percent, and increased its discount rate to 5.25 percent from 5.50 percent. At the same time, the Fed announced that it is worried that excess demand growth could foster inflationary imbalances. Full story. -- ZDNet Inter@ctive Investor