US central bank

Washington, (IANS) : Top officials of the US central bank in Washington are reviewing an option to raise short-term interest rates and by how much, a media report said on Tuesday.

Most economists expect the Federal Reserve to boost the benchmark rate a modest quarter of a per cent, to a range between one and 1.25 per cent, Voice of America reported.

The fed cut rates nearly to zero at the worst of the financial crisis to make borrowing cheaper in a bid to boost economic growth and employment.

Since then, the recovering economy and improved unemployment rate, at 4.3 per cent, have prompted the central bank to gradually raise rates.

Officials worry that keeping rates too low for too long could spark a burst of inflation that could hurt the economy.

Federal Reserve Chair Janet Yellen will meet with journalists on Wednesday afternoon.

She is likely to get questions about possible interest rate hikes.