Interest rates expected to increase later in 2003

US interest rates are expected to rise in 2003 but any indication of a serious economic decline could see the Fed lower them even further. At 1.25%, Federal Reserve chairman Alan Greenspan has interest rates at their lowest since the Federal Reserve began using the Fed Funds rate as its primary instrument of monetary policy. Axa Investment strategist Nigel Richardson says his central view is for monetary policy to remain unchanged over the next three months but he does expect interest rates to rise over the course of the year, to around 2% or 2.5%. He says: 'As the US economy is retu...