The President of the Federal Reserve Bank of Kansas City thinks “it’s time” for the U.S. central bank to raise short-term interest rates to reflect solid improvements in the economy.
The current level of near zero short-term rates, set at emergency levels to deal with deep economic problems, “do not seem needed anymore,” Ms. George said. “We should now be beginning to think about a rise in interest rates,” the official told a gathering on agricultural matters held at her bank. “You have to have some dose of courage” in your forecast and be willing to act, even when the future is uncertain, Ms. George said.
Austan isn’t so sure: