Fed's 'solid' growth view faces test as Greek drama unfolds

The Federal Reserve's upgraded view that growth in the world's biggest economy is "solid", and so capable of withstanding an interest rate rise this year, will be put to the test by U.S. jobs data this week. The Federal Reserve last week lifted its assessment of the U.S. expansion to "solid" from "moderate", with jobs growth now seen as "strong". "Interest rates then were 6 percent. In an encouraging sign, the more widely respected Employment Cost Index, released on Friday, showed labour costs increased by 2.2 percent in the 12 months through December, although still below the 3 percent economists say is needed to bring inflation close to the Fed's 2 percent target.

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