US Federal Reserve lifts interest rates
Tuesday, September 20, 2005
The rate rose by a quarter of a percentage point to 3.75%, but analysts have predicted it may rise to 4.5% in the coming months, in spite of consumer spending being down. The Fed says it is hoping to counter soaring house prices and the high price of oil.
Economic growth in the US this year is forecast at around 3.3%, but government officials estimate that 0.5% growth could be lost due to Hurricane Katrina.
However, analysts are confident that the economy is robust enough to withstand and shake off the effects of high oil prices and unemployment caused by Hurricane Katrina.
- "Fed lifts interest rate to 3.75%" — , September 20, 2005
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