Posted on 05/30/2016 9:12:34 AM PDT by BenLurkin
A U.S. Federal Reserve Bank president said Monday the global markets seem to be poised for an interest rate hike this summer.
James Bullard, president of the Federal Reserve Bank of Saint Louis, said his outlook was not "too surprising" since signs are pointing to a second quarter rebound in the U.S. gross domestic product, the value of all goods and services produced in the U.S.
Bullard's remarks, made at an international conference in Seoul, South Korea, follow revised data Friday from the U.S. Commerce Department that the economy expanded faster than previously thought in the first three months of this year.
He declined to say whether the Federal Reserve Bank, the central banking system of the U.S., should raise interest rates in June or July. Officials from the Fed's twelve regional banks will meet on June 15.
The Fed most recently raised interest rates in December of last year, the first time the bank had done so in nearly a decade.
Interest rates remain unusually low after they were slashed during the 2008 financial crisis in a bid to boost economic growth. The economy's sputtering and uneven recovery has experts debating how soon and how much rates should rise. Raising them too soon could cause the economy to slide back into a recession. Waiting too long to raise rates could cause inflation that could hurt the economy.
Official: “Here’s what I want you to believe ...”
Directly before an R pres. so TSHTF
“”””Raising them too soon could cause the economy to slide back into a recession.””””””
That’s funny stuff right there. Have economists turned into comedians?
An interest rate hike is the best thing we could have. It would cause a short burp in the economy, but - like the interest rate hike of Reagan and Volcker back in 1982 - it would kill inflation (which is running closer to 8% like it was for most of the Carter Administration) and get the economy moving again.
Lower inflation, cut the M0 growth to increase the value of each dollar, that will stabilize the GDP and promote investment. Bump interest rates please!
I agree, except a quarter of a percent move will do squat to stop inflation. They are rather stuck. To fight inflation they need serious rate hikes, but that in turn will do a real number on the economy. There is no way most mortgage holders could survive 4 to 8% in hikes.
Savers are being punished to encourage speculators. I suspect this has to do with Wall Street and the big banks control of our politicians.
These clowns have publicly intimated that a hike would happen and then nothing happened, about a hundred times in the last few years. I think this is what they call “feels-based economics” or “perception is reality for the sheeple”. Is it Groundhog Day, again?
Negative interest rates are what’s really coming, so it makes sense they would be telling fools the exact opposite... blech.
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