US interest rates are expected to rise again today, with economists predicting a quarter-percentage point increase.
This would take the overnight federal funds rate, which governs interbank lending and influences borrowing costs throughout the economy, to 3.5 per cent, its highest level in four years. It will be the 10th consecutive increase.
The US central bank's policy-setting Federal Open Market Committee believes further "measured" rises are likely, a view echoed by economists.
Experts expect the US central bank to increase the federal funds rate by a quarter-point today and at each of the subsequent four policy-setting sessions, taking it to 4.5 per cent by early next year.
Chairman of the Federal Reserve Board Alan Greenspan told Congress last month the central bank expected the economy to keep growing with little inflation, but only if policy makers continued to push credit costs higher to contain price pressures.
Although officials are expected to repeat that risks to growth and inflation are in rough balance, their post-meeting statement is expected to point to the recent signs of strength.
US economic growth did slow a bit in the second quarter as businesses met brisk demand by selling off inventories. But exceptionally lean stocks of goods mean firms now will have to ramp up production, economists say.