US Federal Reserve chair, Janet Yellen, has said it may be "appropriate" for the central bank to raise interest rates at one of its upcoming meetings.
The bank's next meeting on monetary policy is on March 14 and 15.
Speaking to Congress she said delaying rate hikes would be "unwise", and could leave the Fed having to move too fast later, risking causing a recession.
In December the Fed raised its benchmark interest rate by 0.25%, only the second increase in a decade
Questions
1. Why might a central bank raise interest rates?
2. Who gains/loses when interest rates rise?
3. How does a rise in interest rates affect the exchange rate?
