The Federal Reserve raised US interest rates yesterday for an 11th straight time, signalling more increases to come and saying Hurricane Katrina will provide only a temporary setback to the broad economy.
But Fed Board Governor Mark Olson dissented from the rate-rise vote, saying he preferred to hold borrowing costs steady.
This was the first such dissent since June 2003. In a nine-to-one vote, the policysetting Federal Open Market Committee opted to increase the benchmark federal funds rate charged on overnight loans between banks a quarter of a percentage point to 3.75 per cent.
U.S. Treasury bonds fell in the wake of the decision while the dollar held steady and stock markets were mixed.