US Fed to keep raising interest rates

The US Federal Reserve is not ready to stop raising interest rates just yet, top central bank officials have signalled, despite suggestions of slower economic growth.

St Louis Fed President William Poole said the central bank had room to "use monetary policy more aggressively" if needed because of low inflation and anchored inflation expectations.

Federal Reserve Bank of Richmond president Jeffrey Lacker said it was too soon to predict an imminent end to the Fed's campaign to tighten monetary conditions. "It is too early to say when we're going to stop," Lacker said on the sidelines of a banking conference in South Carolina.

The Fed has raised interest rates eight times over the year, bringing its federal funds rate for overnight bank lending to 3 per cent. Wall Street analysts expect at least two rate increases over the coming months.

- REUTERS