Will the Fed Raise Interest Rates?

So far the answer appears to be yes, with the main reason being the specter of inflation.

Opinion was virtually unanimous that the Fed’s bellwether federal funds rate will rise another quarter percentage point to 3%. Most analysts expect the Fed to stick to a policy of “measured” rate rises to keep inflation from gaining a foothold, though some policymakers have signaled they think the language should be changed to make it restrictive.

FILED UNDER: Economics and Business
Steve Verdon
About Steve Verdon
Steve has a B.A. in Economics from the University of California, Los Angeles and attended graduate school at The George Washington University, leaving school shortly before staring work on his dissertation when his first child was born. He works in the energy industry and prior to that worked at the Bureau of Labor Statistics in the Division of Price Index and Number Research. He joined the staff at OTB in November 2004.

Comments

  1. Red says:

    Yes they will raise but where is this specter of inflation Greenspan referes to? He is 6 months behind. I am beginning to think he does need to step down. Hey Allen, lets keep raising those rates so the economy stalls.

  2. bryan says:

    And all the consumers with major credit cards send a big “thank you” to the fed for giving it to us in the shorts again.