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Fed to assess timing of interest rate rise

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U.S. Federal Reserve Chair Janet Yellen is expected to steal the world-economy spotlight from Greece’s woes this week with testimony before Congress on a long-anticipated shift in policy, Reuters reported.

 

If the Fed sticks to mid-year for its first interest rate rise in a decade, people will see it as a sign of the world economy’s growing resilience.

 

U.S. inflation data due next week will also give some idea of just how much the collapse in oil prices, which has held down inflation globally, will affect the Fed’s apparent comfort with raising rates in June.

 

But the fretting over Greece has underscored the impression that for all of the piles of monetary stimulus over the past few years, many of the troubles remain the same.

 

China is grappling with a property market and debt overhang as it tries to rebalance its slowing economy and a purchasing managers’ index due on Wednesday is expected to show persistent stagnation in its once-booming manufacturing industry.