U.S. Raises Key Interest Rate Quarter Point To 1.5 Percent

WASHINGTON, Aug 10 (AFP) - US Federal Reserve policymakers Tuesday raised the key short-term interest rate by a quarter point to 1.5 percent, blaming a spike in oil prices for curbing economic activity.
The vote was unanimous.
"In recent months, output growth has moderated and the pace of improvement in labor market conditions has slowed," the Federal Open Market Committee said in a statement.
"This softness likely owes importantly to the substantial rise in energy prices. The economy nevertheless appears poised to resume a stronger pace of expansion going forward."
Inflation had been "somewhat elevated" this year but some of the price-rise was caused by temporary factors, it said.