After the Federal Reserve raised its benchmark interest rate forthe first time in almost a decade, the Day One follow-through inmoney markets shows the policy move looks to be working.

The overnight U.S. dollar London interbank-offered rate, knownas Libor, fixed at the highest in more than six years Thursday. Therate, which signals where banks think they can borrow from eachother, was posted by Intercontinental Exchange Inc. at 6:45 a.m. inNew York at 0.3614 percent, the highest since March 31, 2009. It'sup from 0.1315 percent a week earlier and 0.0852 percent at the endof last year.

In the lead-up to the Fed decision, investors voiced skepticismthat policy makers would be able to push rates as high as intended,because officials are using a new set of tools to engineer themove. One key question was whether the central bank would expandits reverse repo facility sufficiently to lift the floor for thefunds rate. The Fed allayed that concern Wednesday by removing acap on the program, which siphons excess cash from the system.

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