24 Mar 2015
Bullard: Keeping rates at zero might have “devastating consequences” – Blueprint Capital
FXStreet (Barcelona) - The Blueprint Capital FX Team, shares the comments of Head of the Reserve Bank of St Louis, James Bullard, which state that the Fed failing to raise rates now might have “devastating consequences” down the line.
Key Quotes
“James Bullard, a senior Federal Reserve official and head of the Reserve Bank of St Louis, thinks keeping rates at zero risks inflating asset price bubbles with “devastating consequences”.”
“He said the Fed “should get a move on with normalisation” to avoid having to raise rates aggressively later and create market volatility. His comments add to the growing view that delaying too long will either force the FED to raise aggressively once they do start, or worse, create a bigger, yet unforeseen problem, further down the line."
Key Quotes
“James Bullard, a senior Federal Reserve official and head of the Reserve Bank of St Louis, thinks keeping rates at zero risks inflating asset price bubbles with “devastating consequences”.”
“He said the Fed “should get a move on with normalisation” to avoid having to raise rates aggressively later and create market volatility. His comments add to the growing view that delaying too long will either force the FED to raise aggressively once they do start, or worse, create a bigger, yet unforeseen problem, further down the line."