Economics: US concerns dominate UK focus

The US economic situation continues to dominate the focus of UK investors, as the US Fed prepares to...

The US economic situation continues to dominate the focus of UK investors, as the US Fed prepares to announce interest rates tonight. Jim Wood-Smith, economist at William de Broe, said Federal Reserve Chairman Ben Bernanke is widely expected to hold rates at 5.25%. “The way the dollar is falling, I’d expect Bernanke to remain cautious in view of inflationary pressures. The bet in the market is that US rates will drop in March but that may be too optimistic. We have been revising our view and expect the Fed to keep them unchanged possibly until mid-year.” Wood-Smith has concerns for th...