Yesterday, the Federal Reserve Bank of the United States ("The Fed") increased the interest rate by a quarter of a percent.

The question is when to use the verb "rise" and when to use the verb "raise" ?

The verb "raise" is used when somebody (in this case The Fed.) does something that has a direct effect on something else

(the interest rate), so we would say "The Fed. rasied the interest rate by 0.25%".

We use the verb "rise" to describe an action that simply happens, so in this case we would say

"Interest rates rose by 0.25% yesterday."

Note that the Past Simple of "raise" is "raised" while the Past Simple of "rise" is "rose", which is relevant in this situation as

the change in the interest rate happened yesterday,

In cases where the Present Perfect would be the correct tense, however, we would say "has raised" and "has risen".