A
large amount of economists believe that the Federal Reserve will be raising
interest rates at the September 16-17 meeting. Approximately 82% of economists
said that they believe that the Fed will raise the interest rate, while only
13% said they think the Fed will wait until December. Over the past couple of
months more and more economists believe that the interest rate will be raised
in September. If the interest rate is lifted it will be the first time the Fed
has raised interest rates since 2006. The rates have been sitting right around
zero to pull our economy out of the recession and stimulate a recovery. The President
of the Federal Reserve Bank of Atlanta, Dennis Lockhart, stated, “It will take
a significant deterioration in the economic picture for me to be disinclined to
move ahead.” Janet Yellen said that the Fed will most likely be raising
interest rates in September. She also said that there are risks associated with
tightening too soon which is why they have waited so long to raise rates.
http://www.wsj.com/articles/wsj-survey-economists-expect-fed-rate-liftoff-in-september-1439474573
7 comments:
I think Fed rate liftoff will be one of the most important event in the world since US dollar has very important role in the global business. Once the interest increase, it will effect Global economy a lot. Maybe that is why lots of economists and the business in the world care so much about when Federal Reserve will be raising interest rates. Now countries and business are all preparing for the coming of Fed rate liftoff.
Personally, I look forward to the interest rate hike. I believe that it is crucial that the Fed increases the interest rate since it has been low for so long. This will buffer the economy for the next recession when it will most likely be lowered again. Hopefully, a higher interest rate will stimulate foreign investment in the U.S. which will in turn boost our economy.
I also think that raising the interest rate would be a good idea as well because it would also make it more profitable for banks to give out loans to businesses. By businesses being able to get loans that would increase the amount of investment being put back into the economy as a result and would stimulate further growth. This investment would allow for businesses and the economy to have some extra savings for when the next recession occurs.
I am also looking forward to seeing the Fed raise the interest rates, because of their drastically low rates over the years. It will be interesting to see how the economy as a whole reacts to such an extreme change. With that said, such a substantial change may yield risky results. Furthermore, with higher interest rates, consumers don't have as much disposable income, thus they must cut back on spending. Businesses will have to cut back on spending as well, reducing the potential productivity and employees. Also, earnings and stock will fall. In general, I am concerned as to how the economy will continue to grow out of the effects of a recession and thrive with the new economic standards. Regardless, interest rates have been in desperate need of a change, and it seems as if most thing the ideal time is now.
I am in agreement with John and Ashely. I think it will be very beneficial to the overall economy for the Federal Reserve to raise interest rates. Many people criticize this move because of the fact that higher interest rates would hinder growth due to the fact that disposable income will be lowered... But, if the Federal Reserve keeps interest rates historically low, as they are now, then they will not have a buffer for when the next recession occurs in which they would need to lower interest rates to help fuel the economy. Our economy is currently not in a recession and while this change may hinder some economic growth, it would not be devastating in my opinion. I truly feel the benefits out weigh the costs in this situation and it would be the best move for the Federal Reserve and the economy as a whole to raise interest rates.
I agree that the fed should raise interest rates. The Stock market took a small dive and people are becoming weary about investing, increasing the interest rate will encourage people to buy bonds and save. This is what America needs right now in order to have a balanced economy.
I think no matter when the Fed will increase the interest rate, seems like all economists think it will happen in this year. The economy in US is getting better so i believe the Fed should rise interest rates to stimulate the growth and further help the economy.
Post a Comment