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Re: Fed Signals It May Increase Interest Rates by Midyear 

By: oldCADuser in FFFT3 | Recommend this post (2)
Thu, 19 Mar 15 12:17 AM | 39 view(s)
Boardmark this board | Food For Further Thought 3 		Msg. 10426 of 65535
(This msg. is a reply to 10425 by clo)
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And then again, they may not. I suspect that until they see real wage inflation, they're willing to hold off a bit longer. Unemployment levels alone does not a strong economy make. You have to have some increase in both the work week and in payrolls before you can say that we're approaching full-employment. What some are unwilling to accept or at least see, is that the length and depth of the recession along with the increase in the disparity in wages and wealth, that these factors have 'reset' what the old benchmark statistics were. It's a different world out there today and the Fed is trying to move to an environment where these new metrics are the ones which will say when it's OK to start adjusting their policies and until then, while they may give the impression of a pending increase I suspect that they've also raised the bar as it were.




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The above is a reply to the following message:
Fed Signals It May Increase Interest Rates by Midyear
By: clo in FFFT3
Wed, 18 Mar 15 11:51 PM 		Msg. 10425 of 65535

Fed Signals It May Increase Interest Rates by Midyear

The Federal Reserve signaled Wednesday that it would consider raising its benchmark interest rate at its June meeting, the first increase since the Great Recession, but the central bank emphasized that it might still delay the decision until later this year.

The Fed’s announcement, in a statement issued after a two-day meeting of its policy-making committee, moved the central bank to the verge of ending a period of more than six years in which it has held short-term interest rates near zero.

The march toward higher rates reflects both the Fed’s optimism that the economy no longer needs quite as much help from the central bank, and a sense of fatigue about its long-running campaign to encourage faster economic growth.

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http://www.nytimes.com/2015/03/19/business/economy/fed-interest-rates-fomc-meeting.html?emc=edit_na_20150318

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