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The challenge of timing the US interest rate hike

The fear is that the Federal Reserve could end up raising rates before the American economy is ready for a take-off

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The US unemployment rate has dropped to 5.3 per cent but the pace of inflation has remained moderate and not close to 2 per cent.

SINCE the statement issued after the meeting of the Federal Open Market Committee (FOMC) in March, the message from the policymakers at the US central bank in Washington has been clear.

"The committee anticipates that it will be appropriate to raise the target range for the federal funds