Williams: Rate hikes should start in 2015 H2


Speaking to Reuters, Williams says the pace of rate boosts should be "very slow," with the Fed Funds rate's first digit just being a "2" at the end of 2016.

His comments suggest something along the line of Greenspan's series of 25 basis point hikes to end the massive accommodation he put in place following the crash of the Internet bubble (that mellow rate hike cycle gave us the property bubble).

Yesterday, Atlanta's Dennis Lockhart too suggested beginning rate hikes in late 2015, but new house hawk Jim Bullard sees rate increases starting in less than a year and a Fed Funds rate of at least 4% by the end of 2016.

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Comments (3)
  • Rope a Dope
    , contributor
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    When the rates hit 4%, US taxpayers (the proud, the few) will have to fork over $1 trillion a year in interest just to service the National Debt. I wonder where they'll borrow that money from? I guess they could just print it, provided the dollar remains the fiat currency.
    3 Apr 2014, 09:04 AM Reply Like
  • Captain Pike
    , contributor
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    Correct. They can start small 25 basis point hikes in 2017, IF we can elect a responsible Prez who will work with Congress to slowly reduce the deficit. Reduce deficit, slowly raise rates, if growth continues, not for the sake of it.
    3 Apr 2014, 09:45 AM Reply Like
  • Rope a Dope
    , contributor
    Comments (705) | Send Message
     
    Cap'n, I read an article yesterday where some Representative (can’t remember the state) believes we may have just hit the number of states required to call for a Constitutional Convention to demand a balanced budget. They’re probably about 20 or 30 years too late to save the US, but it’s worth a shot.

     

    Most of the change in governments becoming fiscally responsible seems to be coming from the bottom up, perhaps because they don’t have the ability to print dollars, but it is still an encouraging trend.
    3 Apr 2014, 10:11 AM Reply Like
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