Business and Finance
THE FEDERAL RESERVE pushed up short-term interest rates by one-half percentage point, sending a clear inflation-fighting message. The increase is likely to raise borrowing costs for consumers and businesses: Many big banks raised their prime lending rates after the Fed announcement. The rise also is likely to bolster the dollar against foreign currencies.</br></br>The credit tightening sparked a rally in bond prices, pulling stocks higher. The benchmark 30-year Treasury bond soared nearly 1 3/4 points as its yield fell to 7.36%. The Dow Jones industrials rose 24.28 to 3784.57.</br></br>---</br></br>American Home Products and American Cyanamid renewed takeover talks yesterday, even as American Home's unusual one-day offer expired. People familiar with the talks said the two companies were discussing a friendly combination, with a deal possible as early as today.</br></br>---