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US rates upped on inflation fears

Fears of increasing inflationary pressures prompted the US central bank to raise rates at its 3 May meeting.

The Federal Open Market Committee (FOMC) opted to take action amid concern over rising prices, minutes of the meeting show.

But while there had been an “upcreep” in short term inflation it remained worried about slowing economic growth.

As a result, the FOMC opted to maintain its “measured pace” of rates rises, increasing rates by 0.25% to 3.0%.

The increase was the eighth time the Fed, led by Alan Greenspan, has raised rates since June.

[Full Article]

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