To hike or not? Fed mulls key interest rates move
- 9 years ago
Decision time looms for the US Federal Reserve on whether to raise interest rates now for the first time in nearly a decade, or wait.
Economists, analysts and perhaps the Fed’s policymakers themselves are divided over the move which has a potentially huge impact not just in the States, but on the world economy.
The main federal funds rate – the banks’ overnight borrowing rate – has been virtually zero since the immediate aftermath of the financial meltdown in 2008.
Markets are now eagerly awaiting the decision of the world’s most powerful central bank.
“It’s certainly very important in that it could potentially draw conclusions to all the scepticism as to whether there will be or won’t be an interest rate increase, but it can still certainly prove to be a frustrating environment if they defer giving greater clarity as to the future trajectory of any action on the part of the Fed,” said Eric Wiegand, Senior Portfolio Manager at the Private Client Reserve of U.S. Bank.
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Economists, analysts and perhaps the Fed’s policymakers themselves are divided over the move which has a potentially huge impact not just in the States, but on the world economy.
The main federal funds rate – the banks’ overnight borrowing rate – has been virtually zero since the immediate aftermath of the financial meltdown in 2008.
Markets are now eagerly awaiting the decision of the world’s most powerful central bank.
“It’s certainly very important in that it could potentially draw conclusions to all the scepticism as to whether there will be or won’t be an interest rate increase, but it can still certainly prove to be a frustrating environment if they defer giving greater clarity as to the future trajectory of any action on the part of the Fed,” said Eric Wiegand, Senior Portfolio Manager at the Private Client Reserve of U.S. Bank.
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