US rate rise inevitable

Pittsburgh News.Net
Monday 8th March, 2010

Economists in Washington have suggested the Federal Reserve will soon raise benchmark interest rates.

In an economist survey, most said the US central bank's policies would lead to a rise in rates over the next six months.

While some of the members said Reserve policies were too stimulative, a majority said they thought a rise would be appropriate soon.

The Fed has said continued high rates of unemployment and low inflation had required it to hold rates exceptionally low for an extended period.

But with good economic signs gathering, it is believed the Fed will begin to prepare markets for the beginning of the process of financial rate lifting.

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