The Federal Reserve this afternoon raised its short-term interest rate to 1.25% from 1%, the first increase in more than four years. The rate had been at its lowest level in four decades. The increase "was so well tested ... you could practically take it out of the speeches of at least three Federal Reserve governors," said Casey Colton, vice president and portfolio manager of the American Century Ginnie Mae fund. The Fed, in a statement, pointed to the disconnect between economic growth, higher employment and inflation, said Mr. Colton, who expects the Fed to also raise interest rates by a small amount at its August meeting. Historically, the central bank's actions have not been influenced by political events, such as a presidential election year, he added.