Fed set to raise rates

The Federal Reserve looks set to lift US interest rates on Thursday for a 17th straight time and will likely hold the door open to pushing them even higher in coming months to ward off inflation.

Most analysts expect Fed to raise the overnight federal funds rate a quarter-percentage point to 5.25 per cent, its highest level since March 2001, although a few have speculated about the potential for a half-point move.

Officials on Fed8217;s rate-setting Federal Open Market Committee have made clear their first priority is price stability.