US Stocks Down on FRS Interest Rates Increasing

U.S. stocks fell Tuesday after the Federal Reserve increased interest rates to 4.5 percent and hinted the run of increases is still not finished.

In the final decision-making meeting with Alan Greenspan as the Fed chairman, the U.S. central bank raised the federal funds rate -- the interest rate banks charge each other on overnight loan -- to the highest level in nearly five years Tuesday. It was also theFed's 14th quarter-point increase in a credit-tightening that began about 20 months ago.

"The Committee judges that some further policy firming may be needed to keep the risks to the attainment of both sustainable economic growth and price stability roughly in balance," Fed's statement said.

World crude oil prices fell below $68 a barrel Tuesday after OPEC decided to keep the maximum oil output. New York's main contract, light sweet crude for delivery in March, dropped 43 cents to settle at 67.92 dollars a barrel.