Mubasher: The Governor of the Bank of England, Mark Carney said on Friday that the United States Federal Reserve is raising interest rates for valid reasons, based on the strength of the American economy.

“They’re on the path they’re on for fundamentally good, positive reasons,” Carney was quoted as saying by Reuters during an event at the Economic Club of New York.

The US Federal Reserve has voted unanimously to raise interest rates by a 25 basis points to a range of 2% to 2.25%, the highest level in a decade.

American monetary policymakers seem committed to gradual increasing of interest, with one more rate hike expected in December, bringing the total in 2018 to four, and three more in 2019.

The Federal Reserve remains confident in American growth and labour market, as inflation remains near the 2% level.