Fed hikes rate again, despite Katrina

Ending the suspense, the Federal Reserve hiked its federal funds rate again, the 11th time in a row. More are likely in the near future. In its lengthier-than-usual message, the Fed said Katrina has not shaken its confidence about economic growth in the long run and made clear that its main fear was still inflation. Short-term, it acknowledged the hurricane will likely lead to higher energy prices, more joblessness and uncertainty.

> Here's a New York Times article.
> Here's the Fed's statement.