Why has the Federal Reserve raised short-term interest rates?

The US central bank, the Federal Reserve, Wednesday raised short-term interest rates by another one-quarter percent, the sixth consecutive rise in overnight rates since last June.
    The Federal Reserve says because the economy continues to grow at a brisk pace, it can continue to take away the monetary stimulus that has been in place for several years.
    The quarter-point rise brings short-term rates to a still-low 2. 5 percent. Consumers with credit card or other short-term debt pay more when rates rise. Longer-term rates, despite rising short-term rates, remain largely unchanged with the 10-year government bond yielding about four percent interest.
    Bill Gross, a respected San Francisco-based bond trader, says he expects short-term rates will continue to rise.
    Despite large trade and fiscal deficits, the US economy grew by four percent last year and that pace of growth is continuing. Financial markets are eager for Friday’s jobs report from the labor department to see if job growth, dormant through much of 2004, is rebounding.