Financial Times FT.com

Fed expected to raise interest rate to 4%

By Andrew Balls in Washington

Published: October 30 2005 20:13 | Last updated: October 30 2005 23:54

The Federal Reserve is expected to raise interest rates on Tuesday and signal further increases, after recent speeches by Fed policymakers highlighting concerns about inflation risks.

While there has been no indication that the Federal Open Market Committee will change its judgment that monetary policy remains “accommodative” and that it will continue to raise rates at a “measured” pace, there is a widespread feeling that part of the statement will need to change soon.

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