Fed boosts rate target another quarter point to 3%

WASHINGTON — Federal Reserve policymakers on Tuesday continued their campaign to remove stimulus from the U.S. economy, raising their target for a key short-term interest rate another quarter point to 3%.
The increase in the federal funds rate target is the eighth rise since the current tightening began last June. The Fed also raised its discount rate, what it charges banks to borrow directly, a quarter point to 4%.The federal funds rate is what banks charge each other for overnight loans. An increase in the Fed's target for that rate means banks will immediately raise their prime lending rate, the base rate for many business and consumer loans.