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                        US Central Bank Mulls Rate Hike

   by VOA News

   Top officials of the U.S. central bank are deciding whether or not to
   raise interest rates today (Thursday) in Washington. An increase would
   be the first rate hike in nearly a decade, though many experts expect
   the Federal Reserve will put off the hike until later this year.

   A higher interest rate would bring higher borrowing costs, which would
   tend to slow economic activity.  It could also fend off inflation, but
   may hurt stock market values.  The increase, however, would also be a
   vote of confidence by the Fed in the strength of the U.S. economy,
   which might bolster stock prices.

   The central bank changes interest rates in an effort to manage the
   economy toward stable prices and full employment.

   The Federal Reserve slashed interest rates to a record low range
   between zero and a quarter of a percent during the financial crisis in
   a bid to support economic growth.

   Since then, unemployment has fallen from 10 percent to just over 5
   percent, while inflation has been below the Federal Reserve's target of
   a 2 percent annual rate.

   Some analysts predict that U.S. inflation will rise gradually toward
   the 2 percent target rate.
   An announcement on a possible rate hike is expected at 2 p.m.
   Washington time (1800 UTC).
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   [1]http://www.voanews.com/content/us-federal-reserve-interest-rate/2967
   808.html

References

   1. http://www.voanews.com/content/us-federal-reserve-interest-rate/2967808.html