Friday, June 5, 2015

New York Fed Prez Says Fed Likely to Raise Interest Rates in 2015

“If the labor market continues to improve and inflation expectations remain well-anchored, then I would expect -- in the absence of some dark cloud gathering over the growth outlook -- to support a decision to begin normalizing monetary policy later this year,” William C. Dudley, president of the Federal Reserve Bank of New York, who has a permanent vote on the policy-setting Federal Open Market Committee, said during speech today in Minneapolis.

This follows commentary from the International Monetary Fund,in its annual review ,where it advised that the Federal Reserve should wait until next year before raising its benchmark interest rate

The Fed is obviously marching to its own drummer and not taking orders from the IMF.

Dudley ,though, did stress that interest rates are likely to rise gradually after liftoff.

Fed chair Janet Yellen said on May 22 that she expects to raise rates this year if the economy meets her forecasts.

It is extremely likely the Fed will raise rates later this year. The idea that the Fed is about to launch another round of QE or that the Fed will never raise rates seems way off base to me.



  1. It always seemed like US institutions trump international ones.

  2. Raising rates will lead to a massive economic collapse. Ten times greater than the 2008 event. The US economy is a leaky bubble that needs constant steam of hot debt air to keep it from collapsing.

    Seems odd that this is happening again, almost exactly 10 years later. Its like they WANT another financial panic. But why? To get Hilary elected? Or someone else?