Fed hints at future rate increase (BBC)

[eppur_se_muova]

The US Federal Reserve hinted further interest rate rises may be needed to keep inflation in check at its last policy meeting, minutes show.

At the December meeting, the Fed voted to leave rates on hold at 5.25% for the fourth time in a row.

As well as inflation, the group was also worried about a "substantial" slowdown in the housing market.

Analysts believe the Fed is waiting for a clearer picture of both the US economy and future inflation risk.

'Mixed signals'

"Several members judged that the subdued tone of some incoming indicators meant that the downside risks to economic growth in the near term had increased a little and become a bit more broadly based than previously thought," minutes of the meeting showed.
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more: http://news.bbc.co.uk/2/hi/business/6229273.stm

[whistle]

1. This will collapse the U.S. dollar further

[screembloodymurder]

2. No, it will support the dollar.

Higher rates attract investors.