The Federal Reserve is expected to raise US interest rates as it latest regular meeting on Tuesday to 4%, the 12th consecutive quarter point rate increase. That follows recent speeches by Fed policymakers highlighting the central bank’s concern about inflation risks and therefore the need to continue putting up the cost of borrowing.
The Fed’s chairman, Alan Greenspan, has just three more gatherings of the Open Market Committee to preside over before he retires. He has been been in that job since 1987.
The White House has put forward as Greenspan’s successor Ben Bernanke, the chairman of President George Bush Council of Economic Advisers.Bernanke has served on the board of governors of the Federal Reserve System.If he is confirmed in that post by the US Congress, he is expected to continue Greenspan’s policy keeping on the offensive against inflation.