IMF to Fed: Raise rates?
from San Diego Union Tribune (06.14.2015)
Bob Rauch on the EconoMeter panel as they discuss the Fed should raise interest rates.
Do you agree with the International Monetary Fund that the Fed should wait until next year before increasing interest rates?
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Bob Rauch: YES
“If the Fed decides to raise rates in 2015, the psychological impact to stunting the economy would be greater than the actual impact to the economy that usually occurs about 12 months after a rate change. I would cautiously increase rates in 2016 at 25 basis points at a time. This will keep inflation in check and keep the economy moving forward at a time when it could run out of gas if rates rise too quickly”
