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To Raise Or Not To Raise Rates: A Tale Of 2 Fed Reserve Presidents

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To Raise Or Not To Raise Rates: A Tale Of 2 Fed Reserve Presidents
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Should the Federal Reserve raise interest rates any time soon?

Many investors are assuming that a rate hike in the near term is no longer feasible, but the topic is still heavily debated among Fed members themselves.

The Hawk: Cleveland Fed President Loretta Mester

The Federal Reserve's Cleveland President Loretta Mester said during a recent speech that the rebound in U.S. job growth eased concerns over the labor market, and interest rates are expected to gradually rise.

Mester's comments followed June's jobs report, which showed the U.S. economy added a better-than-expected 287,000 jobs.

"Payroll growth slowed considerably in May, raising the question of whether we were at the start of a reversal from the considerable progress that's been made in labor markets, or whether the weak reading was the type of transitory change we typically see during expansions," Reuters quoted Mester as saying in her speech. "Hiring rebounded in June, alleviating that concern."

Related Link: Federal Reserve Gives Final Time-Extension For Banks To Conform To The Volcker Rule

The Dove: Minneapolis Fed President Neel Kashkari

Taking the other side of the debate, Minneapolis Fed President Neel Kashakari was quoted by Reuters as saying in a Michigan town hall meeting that the Federal Reserve should "take our time" when it goes ahead with interest rate hikes.

He also said the Federal Reserve's metrics of employment and inflation are coming up short of expectations.

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Posted-In: Fed Interest Rate Hike Federal Reserve Federal Reserve Presidents Loretta Mester Neel KashkariTop Stories Federal Reserve Media Best of Benzinga

 

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