Fed raises interest rates...

...by a quarter point. No surprise there -- the move was widely expected, and markets had essentially adjusted for it in trading yesterday. But an econ blog would be remiss in failing to mention it.

UPDATE (3/23/05 3:00 pm): Cranky Economist Ignorance Alert -- This turns out to have been a surprising move after all. Those in the know when it comes to the fine art of deciphering Fed-speak (which means just about every commentary except for yours truly) picked up on the fact that this statement contained an unusually strong warning on inflation, born out this morning by a surprising increase in the Consumer Price Index (CPI) and reflected in a significant dip in stock prices.

In my defense I will merely say that I only have the chance to be young and stupid once, and I intend to take full advantage of the opportunity.