10 Apr 2014
Fed's Tarullo: When time for rate hikes come, Fed can do so gradually
FXStreet (Bali) - According to Federal Reserve Board Governor Daniel Tarullo, who is giving a prepared speech at the Hyman P. Minsky Conference on “Stabilizing Financial Systems for Growth and Full Employment” in Washington, when time comes for interest rate rises, Fed can do so gradually.
According to Tarullo, cited by Reuters, "the modest pace of U.S. economic growth in recent years suggests that when the time comes to raise interest rates the Federal Reserve will be able to do so gradually without fear of a sudden surge in inflation."
“It seems less likely that we will experience a growth spurt in the next couple of years that would engender concerns about rapid wage pressures and changes in inflation expectations”, Tarullo said.
Lastly, Tarullo added that "the Fed should not rush to act preemptively in anticipation of wage pressures based on arguments about the potential increase in structural unemployment in recent years.”
According to Tarullo, cited by Reuters, "the modest pace of U.S. economic growth in recent years suggests that when the time comes to raise interest rates the Federal Reserve will be able to do so gradually without fear of a sudden surge in inflation."
“It seems less likely that we will experience a growth spurt in the next couple of years that would engender concerns about rapid wage pressures and changes in inflation expectations”, Tarullo said.
Lastly, Tarullo added that "the Fed should not rush to act preemptively in anticipation of wage pressures based on arguments about the potential increase in structural unemployment in recent years.”