Fed raises interest rates for 11th consecutive time - Sep. 20, 2005

Raising the rates right now was, IMO, a really stupid thing to do. And, the market reacted in the same tone. I agree that some effects of Katrina will be short-term, the thing is that it just happened. And, it just happened at a time where gas prices were at a peak BEFORE Katrina hit.

Dumb move.. we have higher fuel costs, which will trickle down to higher prices (all short-term, I believe) at some point, and raising the rate means higher credit card rates and mortgage rates. As well, we'll see how many days the stock market acts angry about it. The Fed really should have just left the rates as they are for the time being. Maybe raised them in December after giving more time for the Katrina aftermath to get settled, the coming Rita to pass and for time for fuel costs to decline more steadily. Bad timing if you ask me, especially since all the headlines will be reading "4 year high".