The U.S. Federal Reserve raised interest rates on Tuesday by a quarter percentage point as expected, the third straight rise in a bid to keep a lid on inflation pressures despite some signs of economic softness. The unanimous decision by the policy-setting Federal Open Market Committee moves the benchmark federal funds rate -- which influences credit costs throughout the economy -- to 1.75 percent. The Fed lifted rates by matching amounts in June and at its last policy session on Aug. 10, spelling an end to a lengthy period of super-low rates. A soft pace of job creation and higher energy prices have put stress on U.S. consumers, leading to a drop in retail sales in August. Some economists believe this means the rate-rise cycle is near an end though the Fed has contended an economic "soft patch" that began mid-year will prove short-lived.
