US interest rate hike may hurt global economy

FURTHER interest rates hikes in the US could kill off global economic growth, a leading Irish economist warned yesterday.

Austin Hughes of IIB Bank said the danger existed that recently appointed US Federal Reserve chairman Ben Bernanke could be tempted to hike rates a further 0.5%, pushing the key rate to 5.5%, to demonstrate to the financial markets he is tough on inflation.

“Economic upturns don’t die of old age; they are killed off in their beds by central bankers,” he said.