NEW YORK (CNN/Money) - Stocks erased losses and attempted to rise Tuesday afternoon after the Federal Reserve opted to boost a key short-term interest rate by a quarter-percentage point, as expected, and signaled it would continue raising rates at a "measured" pace.

The Dow Jones industrial average (down 23.45 to 10,416.62, Charts), the S&P 500 (down 4.81 to 1,202.20, Charts) index and the Nasdaq composite (down 7.75 to 2,112.55, Charts) all slipped around 0.3 percent at 2:25 p.m. ET, 5 minutes after the almost 2:20 p.m. ET announcement.

Fed policy makers, meeting Tuesday, opted to boost the Fed funds rate -- an overnight bank lending rate -- by a quarter-percentage point to 4.0 percent, as had been expected. It marked the 12th hike in a row since the central bankers began their rate-hiking campaign in June 2004.

Treasury prices showed little reaction, with the yield on the 10-year note holding at 4.56 percent, up from 4.55 percent late Monday. Treasury prices and yields move in opposite directions.

The dollar declined further versus the euro and yen.