{"id":578200,"date":"2010-05-25T17:57:36","date_gmt":"2010-05-25T21:57:36","guid":{"rendered":"http:\/\/washingtonindependent.com\/?p=85687"},"modified":"2010-05-25T17:57:36","modified_gmt":"2010-05-25T21:57:36","slug":"three-fed-presidents-recommend-interest-rate-increase","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/578200","title":{"rendered":"Three Fed Presidents Recommend Interest-Rate Increase"},"content":{"rendered":"<p>Today, the Federal Reserve <a href=\"http:\/\/www.federalreserve.gov\/newsevents\/press\/monetary\/20100525a.htm\">released<\/a> the minutes of its Board of Governors meetings to discuss the United States&#8217; monetary policy in April. In February, all twelve Federal Reserve regional bank presidents requested to keep the primary credit rate at 0.75 percent. In March, eleven banks voted for 0.75 percent, but the Federal Reserve Bank of Dallas voted to move to 1 percent. In mid-April, the heads of the Kansas City, St. Louis and Dallas banks all voted to establish a rate of 1 percent.<span id=\"more-85687\"><\/span><\/p>\n<p>On one hand, this is no surprise. The three banks&#8217; presidents are, respectively, Thomas Hoenig, James Bullard and Richard Fisher &#8212; all known as inflation hawks, more concerned with low rates leading to inflation than with high rates leading to unemployment. It is not a sign of an imminent rate increase either. (The Federal Reserve banks don&#8217;t set their own rates. Additionally, to be clear without getting too deep in the weeds here, the <a href=\"http:\/\/www.federalreserve.gov\/monetarypolicy\/discountrate.htm\">primary  credit rate<\/a> is different from the <a href=\"http:\/\/www.federalreserve.gov\/monetarypolicy\/openmarket.htm\">federal funds rate<\/a>, and it impacts how much banks pay to borrow from the government rather than how much consumers pay banks for loans.)<\/p>\n<p>Indeed, last month, for the sixteenth month in a row, the Federal Reserve <a href=\"http:\/\/www.federalreserve.gov\/newsevents\/press\/monetary\/20100428a.htm\">recommended<\/a> keeping the federal funds rate low for an &#8220;extended period&#8221;: &#8220;With substantial resource slack continuing to restrain cost  pressures and longer-term inflation expectations stable, inflation is  likely to be subdued for some time. The Committee will maintain the target range for the federal  funds rate at 0 to 0.25 percent and continues to anticipate that economic  conditions, including low rates of resource utilization, subdued  inflation trends, and stable inflation expectations, are likely to  warrant exceptionally low levels of the federal funds rate for an  extended period.&#8221;<\/p>\n<p>Still, it demonstrates that more major figures within the Federal Reserve system are advocating a consideration of rate increases.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Today, the Federal Reserve released the minutes of its Board of Governors meetings to discuss the United States&#8217; monetary policy in April. In February, all twelve Federal Reserve regional bank presidents requested to keep the primary credit rate at 0.75 percent. In March, eleven banks voted for 0.75 percent, but the Federal Reserve Bank of [&hellip;]<\/p>\n","protected":false},"author":6662,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-578200","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/578200","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/users\/6662"}],"replies":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/comments?post=578200"}],"version-history":[{"count":0,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/578200\/revisions"}],"wp:attachment":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/media?parent=578200"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/categories?post=578200"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/tags?post=578200"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}