Fed likely to continue with rate rises

RECORD oil prices and the underlying inflationary threat suggests the US Federal Reserve will continue to raise rates in the months ahead.

Rates are likely to hit 2% by the end of the year, Bloxham senior economist Alan McQuaid predicted yesterday.

Depending on the strength of US growth and the level of inflation, rates could hit 3.5% to 4% over the next 18 months, he said.