The Fed may lift rates sooner than you think

A recovering labour market should see the US economy finish the year on a stronger note. And with inflation also tracking higher, the Fed may have reason to lift rates earlier than expected.

The Federal Reserve continues to wind down its asset purchases amid continued signs of recovery, and a move on rates could occur by early next year. The US economy rebounded somewhat during the June quarter, more than offsetting a poor first-quarter result, and with the labour market continuing to improve the outlook is bright for the second half of the year.

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