A strengthening economy and gathering momentum in the property market are bolstering arguments for higher interest rates in the second half of the year as Federal Reserve policymakers prepare to meet this week.
The Federal Open Market Committee will convene tomorrow and on Wednesday after Janet Yellen, the Fed chair, told Congress that the US economy needs higher short-term rates and that there were risks in waiting too long.
While the newly resurgent dollar poses risks to US exports and inflation, other international dangers have lessened — most notably from Greece, which is discussing a new bailout.
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