Fed raises key interest rate.(A SECTION)

The Federal Reserve stuck to its inflation-fighting guns Tuesday, raising a key interest rate in hopes of slowing the supercharged economy.

Banks reacted immediately to the Fed's action by hiking their prime lending rates by a half-point to 9.5 percent, the highest level in nine years, guaranteeing more expensive borrowing costs for home equity loans, credit card balances and short-term loans for small businesses.

Even the sizzling Southwest Florida economy may finally feel the impact of the sixth interest rate hike since June.

"Lending will slow down, which is exactly what the Fed wants," said Christine Jennings, president of Sarasota Bank. "You add one point above the 9.5 percent prime for development and construction loans, and all of a sudden you're at a rate that does not make it feasible."

After a closed-door meeting of its rate-setting Federal…