US Fed to raise interest rates despite sluggish economy

When it raised rates last month, the Fed expressed confidence that inflation would pick up before long. But most analysts, even the ones more optimistic about growth, remain skeptical that will happen. (Picture shows the US Fed building)

WASHINGTON: For the second time this year, the US central bank appears poised to raise interest rates despite fresh signs the world’s largest economy is not in peak condition.

The recent soft numbers on the economy may have weakened the case for an increase in the benchmark lending rate by the Federal Reserve, which begins a two-day meeting from tomorrow to review monetary policy.