Federal Reserve puts rate rise on the radar

The US Federal Reserve has started to debate when to raise interest rates, prompting speculation that it could move sooner than previously expected.

A “few” of the dozen members of the Federal Open Market Committee “raised the possibility that it might be appropriate” to increase short-term interest rates “relatively soon”, according to minutes from its January meeting.

The central bank has said in the past that it will not raise rates until the US unemployment rate falls below 6.5%, but this figure is no longer taken seriously, following a much sharper than expected fall in the number of people out of work.

The BBC's Jonathan Bithrey speaks to Dr Robert Shapiro and journalist Emily Rauhala.