Economists predict tripling of rates

market ANALYSIS

US interest rates will have tripled by the end of 2004, with economists anticipating a series of 0.5...

US interest rates will have tripled by the end of 2004, with economists anticipating a series of 0.5% rises starting in 2004. According to economists from Credit Suisse Asset Management, HSBC, Barclays Capital, Gartmore and the Prudential, the Federal Reserve is likely to increase rates at 50 basis points a quarter, reaching 3% by the end of the year. Henry Willmore, chief economist at Barclays Capital, is confident the Fed will start to hint that deflation is less of a concern and the risk of inflation is starting to pose a more likely threat. He believes that when the change does come ...