WASHINGTON, May 3 (Xinhuanet) -- The US Federal Reserve on Tuesday raised the federal funds rate, the interest commercial banks charge each other on overnight loans, by another quarter percentage point to 3 percent.

    The decision was made by the central bank's Federal Open Market Committee, which sets monetary policy. This was the eighth consecutive action the Fed moved to tighten its money supply sincelast June, when the benchmark interest rate stood at a 46 year low of one percent.

    The latest increase came amid growing signs of an economic slowdown. US economic growth slowed sharply in the first three months of this year, according to preliminary government estimates. But inflation has quickened at the same time. Enditem