Jerome Powell, the new chairman of the US Federal Reserve, is to vote for an interest rate rise at this week’s policy meeting amid increased fears the world’s biggest economy may be ­overheating.

Market forecasts give a 99.3pc probability that rates will rise from 1.5pc to 1.75pc on Wednesday.

Economists increasingly suspect it will be the first of four rises this year. These may be required to keep inflation under control at a time of very low unemployment and building tensions in markets.

This week “could set the tone for the rest of this year and beyond, and ­investors will be wondering whether Mr Powell sanctions a more aggressive stance than the markets currently ­expect”, said Russ Mould at stockbroker AJ Bell.