If we were to raise interest rates too steeply, and we were to trigger a downturn or contribute to a downturn, we have limited scope for responding, and it is an important reason for caution.
Sentiment: NEGATIVE
And so the danger for the housing industry is if we see interest rates rise.
It's appropriate for the Fed to gradually and cautiously increase our overnight interest rate over time.
Efforts to promote financial stability through adjustments in interest rates would increase the volatility of inflation and employment. As a result, I believe a macro-prudential approach to supervision and regulation needs to play the primary role.
It would be helpful if someone would lay out exactly the economic mechanism that gets us from yet lower interest rates to actual economic activity.
And so we have to be careful with looking at additional stimulus that we don't provoke an increase in the bond rate and then offset a lot of the stimulus we've already got.
The Fed's ability to raise and lower short-term interest rates is its primary control over the economy.
Should that worse scenario materialize, then most probably our propensity to increase interest rates will be weaker.
When the time comes to raise rates, I do think there will be some benefits that flow through to savers.
By putting downward pressure on interest rates, the Fed is trying to make financial conditions more accommodative - supporting asset values and lower borrowing costs for households and businesses and thus encouraging the spending that spurs job creation and a stronger recovery.
Worry is interest paid on trouble before it comes due.
No opposing quotes found.