Fed May Not Increase Rates Until 2012, Bullard Says |
| Bloomberg - Nov 18, 2009 |
Federal Reserve Bank of St. Louis President James Bullard said past experience suggests policy makers may not start to raise interest rates until early 2012, while concern borrowing costs have stayed “too low for too long” may prompt an earlier move.
“If you look at the last two recessions, in each case the FOMC waited two and a half to three years before we started our tightening campaign,” Bullard said today in a speech in St. Louis. “If we took that as a benchmark, that would put us in the first half of 2012.”
Bullard added that in the debate on when to tighten policy, “the idea that you might be creating asset bubbles by keeping rates too low for too long will be an important argument.”
Read Full Article from Bloomberg
- Posted: 2009-11-18 11:39:08
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