FRANKFURT: The US Federal Reserve may give clearer hints on when it will hike the cost of borrowing in the United States in the week, as struggling Europe braces for a tight vote in Scotland on whether to leave the United Kingdom.
As the US economy picks up pace, its central bank is inching closer to raising interest rates, a move that will send ripples across the globe. In the eurozone, however, the European Central Bank is moving in the opposite direction in a desperate bid to rekindle growth and inflation.
The United States is shaking off the hangover from a financial crisis that hammered Europe and even knocked mighty China off its stride.
But the US rebound, thanks in large part to cheap Fed money, now means Federal Reserve Chair Janet Yellen will have to decide when to pare back this support.
Further hints as to when the first US rate hike in more than eight years will happen could come on Wednesday in a statement after the bank’s governors meet. Reuters
