SAN FRANCISCO/WASHINGTON (Reuters) – Two top Federal Reserve officials known for their hawkish policy views said Friday they believed the U.S. economy was ready for interest rate hikes sooner than many expect, with one saying he thought rate hikes should start this year.
Fed policy, which has included keeping short-term borrowing costs near zero since December 2008, "remains well behind what I consider to be appropriate given our goals," Charles Plosser, president of the Philadelphia Fed, said in a statement.
Plosser was the lone dissenter in the U.S. central bank’s decision Wednesday to keep its promise to hold interest rates near zero for a "considerable time" after it ends its bond-buying stimulus program in October.
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It's because of all the inflation out there.
ReplyDeleteFor those of you who just bought homes, be prepared to go under water. Higher rates mean higher payments, and home prices have to drop to offset the monthly payment that people by off of.