By Nicholas EvansBloomberg, December 19 (Reuters) – The U.S. Federal Reserve could boost inflation by 1.5 percentage points, the central bank’s governor said on Wednesday.
A 3 percent increase in the fed funds rate would be more likely than a 1.1 percentage point hike.
The Fed’s policy rate is already at 0.25 percent.
The Fed’s actions to raise interest rates, however, will be much more closely watched by the U.K. than in the U to avoid an unexpected jump in the pound.
The pound has fallen sharply in recent weeks amid fears of a Brexit.
A pound of sterling hit a 52-week low of $1.3166 per U.N. dollar in mid-December.
The U, which voted in June to leave the European Union, has been hit by falling demand for goods from the European market.