The US Fed raised interest rates overnight for the 11th time on the trot – by 25 basis points – despite calls from some quarters, including Fed Board Governor Mark Olson, for steady as she goes in the wake of Katrina and rising oil prices.

Despite speculation in the immediate wake of Katrina that a rate cut might be on the cards, the rise was widely tipped, and has drawn mostly “I told you so” comments from analysts.

We await likely upside flow-on effects and possible inflationary pressure, as construction and infrastructure spending ramps up again once things settle down.

Read more here.

NB. Kudos to the AFL tribunal for taking the common-sense approach to Big Barry Hall’s “indiscretion.” Ridiculous to expect that the “punch” – which had about the same impact as being hit with a wet lettuce leaf by a ritalin-deprived kindergarten bully – should lead to a suspension. Read on here.