US Federal Reserve Raises Interest Rate 4.5%
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the US Federal Reserve has announced that interest rates in the United States are to rise by 0.25% to 4.25%, representing the 13th increase in interest rates. However, experts are split down the middle on the issue of future interest rate rises, with some wanting to dispell any talk of future rises because it could damage consumer confidence.
Alan Greenspan, the Federal Reserve’s chairman of 18 years, is due to leave his job in January 2006. Greenspan will be replaced by Ben Bernanke who is currently head of President Bush’s Council of economic Advisers. Mr. Bernanke is a former governor of the Federal Reserve. Analysts will be watching closely as the changeover approaches.