CRAWFORD, Texas – President Bush voiced concern over soaring energy and health care costs yesterday, while the Federal Reserve hiked short-term interest rates to the highest level in nearly four years to guard against inflation.

It was the Fed’s 10th interest rate hike in 14 months to tighten credit and pushed the federal funds rate by one quarter percentage point to 3.5%. Commercial banks responded by increasing their prime lending rates, the base for many consumer loans, to 6.5%.

Mr. Bush said rising interest rates were not his chief economic worry.

“I think we’re more concerned about energy prices and health care prices,” said the president, who was meeting at his ranch with economic advisers. Those two areas will have a greater effect on the economy’s future health, he said.

Polls show a majority of Americans disapprove of Mr. Bush’s handling of the economy. A recent Associated Press-Ispos poll found Mr. Bush’s economic approval rating at just 41%.

Mr. Bush readily acknowledged that Americans’ pocketbooks are taking a hit from rising costs for health care and for gasoline. The Energy Department reported Monday that the average U.S. retail price of gasoline rose to a new high last week of $2.37 a gallon, and it is heading higher. Oil prices also jumped to a new high above $64 a barrel yesterday before easing off.

“None of us are comfortable paying $2.50 per gallon when we go to fill up our cars with gas,” said Allan Hubbard, director of the National Economic Council.

In Texas, Benjamin Bernanke, chairman of the president’s Council of Economic Advisers, told reporters camped out at a nearby school gymnasium after the meeting that the economy has been resilient enough not to be slowed by energy costs so far. He said rising health care costs have been more of a problem.

Mr. Bernanke said health care costs have risen more than 30% since Mr. Bush has been in office. He said the average family spends about $600 beyond insurance costs for health care.

Still, Mr. Hubbard said most Americans are happy with their personal finances, and he thinks war and terrorism also are contributing to the president’s low approval ratings. “We are a nation at war,” Mr. Hubbard said. “Obviously, that causes a lot of unease.”

Mr. Bush rattled off employment statistics to support his view that the economy is thriving – 200,000 jobs added in July, nearly 4 million since May 2003 and an unemployment rate at 5%.

He said although the energy bill that he signed into law Monday in New Mexico won’t lower gas prices soon, it is “an important start” to address tight supply and demand for oil.