There will be no inflationary pressure on the United States economy forcing the Federal Reserve to increase interest rates, according to a senior Wall Street banker. Kevin Bannon, executive vice-president and chief investment officer of The Bank of New York, said there would be no inflationary problem in the US until there was pressure on companies to increase wages. 'There is no pressure to increase wages despite the fact we are looking at the lowest unemployment rate for 30 years in the US,' he said. According to Mr Bannon, the low unemployment rate had not translated into a demand for higher wages by employees. On Friday, a US Government report showed consumer prices climbed last month at the fastest pace in almost nine years, triggering concern the Federal Reserve might increase interest rates, which could in turn force up interest rates in Hong Kong. Mr Bannon said the 0.7 per cent increase in consumer prices in the US was an aberration caused by an increase in the supply of domestic oil. 'So the ugly number was when oil kicked in, otherwise the long-term inflation numbers are very well behaved,' he said.