US rates up for third time this year

The US Federal Reserve on Tuesday raised interest rates for the third time this year by a quarter of a percentage point and said the economy was regaining some momentum, signalling at least one more to come. The widely expected and unanimous decision...

The US Federal Reserve on Tuesday raised interest rates for the third time this year by a quarter of a percentage point and said the economy was regaining some momentum, signalling at least one more to come.

The widely expected and unanimous decision by the policy-setting Federal Open Market Committee moves the benchmark federal funds rate - which influences credit costs throughout the economy - to 1.75 per cent.

The central bank lifted short-term rates by matching amounts in June and at its last policy session on August 10, spelling an end to a lengthy period of super-low rates. Many economists expect a fourth rise at the next meeting on Novemberr 10, about a week after the US presidential elections.

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