"New York Times" editorial hair against the Federal Reserve to raise interest rates too quickly

US stock market center: Exclusive offer full industry sector stocks, premarket after-hours, ETF, warrants night network real-time quotes, nightlife network Finance YORK, Aug. 26 news, as the US economic growth accelerated, the recent Federal Reserve to raise interest rates point more and more discussions。Plus quantitative easing the Fed has basically been determined at the end of October (QE) program, must be given new guidelines for the next policy developments。Jackson Hole (Jackson hole) global central bank held last week [microblogging] annual meeting, officials on raising interest rates in a fierce discussion, in which a small number of Fed officials hope to raise interest rates as soon as possible in order to avoid inflation, Federal Reserve Chairman Xi Yelun the statement is ambiguous, while noting that the unemployment rate overestimated the progress in the labor market, on the other hand said that if inflation and employment improve faster than expected, it may raise interest rates ahead。  "New York Times" recently published an editorial against the Federal Reserve to raise interest rates prematurely, that the US economic growth, employment and inflation trends in the market do not support the Fed to raise interest rates, rate hikes could lead to economic decline。The editorial believed that fiscal policy to support the US economy still needs the Fed's monetary policy and the support of Congress, in recent years, Congress mistakenly abolished or even reverse the fiscal stimulus, has become a major policy failure, the Fed should not repeat the same mistakes。  The editorial pointed out that the recent improvement in US economic growth and employment has sustained remains to be seen whether, ample evidence can only be mixed prospects this year may only achieve 2.Weak growth of 3%, not enough to increase the quantity and quality of employment as well as support to raise interest rates as soon as possible。  Moreover, the editorial pointed out, even if full recovery of growth and employment, can not be sure whether it will cause a significant rise in inflation。In the "New York Times", the US inflation rate rising wages need to rise significantly, such as an increase of more than 3 years.5%, while the reality is that the average salary increase of only 1 since mid-2009.9%。  The editorial that, in this context, the recent interest rate equivalent to the requirements of state recognized low wage growth, support economic growth and corporate profits rather than the outcome of the main flow of the status of workers' wages。For this, the editorial was inclined to support the position of Yellen and their supporters。  But for raising interest rates in the debate, in addition to growth, employment and inflation, as well as the asset bubble problem。Is a widespread view that the Fed's long-term low interest rate policy has caused serious asset bubble, including stocks, bonds and real estate。  The editorial acknowledged the existence of asset bubbles, but do not think it should be suppressed bubble by raising interest rates, but a means to ensure that institutions and investors will not take advantage of low interest rates as speculation through regulation。The editorial believed that this includes identifying and curbing some of the risky lending practices of signs, including car loans and student loans beyond the secondary repayment ability, but also guard against systemic risk signal complex activities of financial institutions in the hidden。  Editorials concluded that, although "quite a long time" to maintain low interest rates can not guarantee sustained economic growth, but certainly too early to raise interest rates will lead to economic recession。  The editorial pointed out: "the two pillars of the economy – good jobs and good pay – not yet fully recovered, before that, the economy still needs support fiscal policy to support monetary policy of the Fed and Congress。In recent years, financial support was withdrawn and reversed。This practice was originally unnecessary errors caused by inhibition of both policy failures, but also on the political failure of economic growth。Premature rate hike will be with a similar policy mistakes, will bring enormous economic costs。"(Shofu compilation)

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