It's Time to Raise Rates, Ben - The Economy Article - interest rates, economy, inflation

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It's Time to Raise Rates, Ben

Article Submitted by: ktexas
The Economy

Tags: Interest rates, Economy, Inflation, Federal reserve, Federal funds rate, Recession, Monetary policy.

With the crisis clearly past, the Fed ought to boost short-term rates to a more normal 2% - still low by historical standards - to send a signal to the markets that the U.S. is serious about supporting its beleaguered currency and that the worst is over for the global economy. Years of low short rates helped create the housing bubble, and the Fed risks fostering another financial bubble with its current policies.

Submitted: Oct 24, 2009 Views: 228 Comments: 2 Likes: 1

View Article: http://www.smartmoney.com/investing/economy/it-s-time-to-raise-rate...

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Comments Received:

Cali
(Unregistered)

The rising stock market is evidence that another bubble has already formed. There are no fundamentals other than lower rates and the decline of the dollar that would explain its meteoric rise.

Posted: Oct 24, 2009

Sol Nasisi

Interesting article. It also put the dilemna that savers are in with the Fed Funds rate near 0. If the stock market is a leading indicator then maybe it is getting time to think about raising rates.

Posted: Oct 25, 2009

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