Raise interest rates – by how much?
EconoMeter panel anticipates Federal Reserve action
from San Diego Union Tribune’s EconoMeter panel.
Q: Should the Federal Reserve raise short-term interest rates (currently 0-0.25 percent) and, if so, by how much?
Bob’s Answer: YES
Twenty-five basis points (a quarter percent) will not have a material impact on the economy yet will help banks and signal some strength in this current slow growth economy. Job availability, wage growth and consumer confidence are in a good place; 25 basis points will not raise borrowing rates enough to deter small business; and home buying and energy prices remain low. Inflation is in check and 2016 will be a solid year for the U.
S. economy.