Fed Chair Yellen Warns Against Raising Rates Too Quickly

Date: July 17, 2014

Yellen Says Quick Rise Could Hurt Economy, But Some Say Rates Need To Rise Soon

With the Federal Reserve planning an end to its
post-financial crisis bond-buying program, attention is now turning to when the
Fed will start allowing interest rates to rise, and by how much. Fed Chair
Janet Yellen told a House committee Wednesday that the economy is not yet
strong enough for interest rates to rise much, and also criticized Republican
calls for a strict set of rules on rate increases, saying that would inhibit
the Fed and possibly hurt the economy. She made a similar case to a Senate
panel Tuesday.

The Wall Street
Journal, however, says Dallas Fed President Richard Fisher wants rates to rise
as early as later this year, while the New York Times says some top hedge fund
managers also want to see higher rates, arguing that even if that drives stocks
down in the short term, it could help prevent a return to the conditions that
led to the crisis. Bloomberg News says Philadelphia Fed President Charles
Plosser has also endorsed higher rates soon, though some other Fed leaders want
to wait until at least a year from now.

Further Reading:

The AP covers some of Yellen’s arguments,
while the New York
Times

covers arguments from the other side.

The NFIB Research Foundation has collected Small Business Economic Trends data with quarterly surveys since 1974 and monthly surveys since 1986. Survey respondents are drawn from NFIB’s membership

This news article is intended to keep small business owners apprised of current events that may affect them. It does not necessarily reflect NFIB’s policy position on such issues.

Subscribe For Free News And Tips

Enter your email to get FREE small business insights. Learn more

Get to know NFIB

NFIB is a member-driven organization advocating on behalf of small and independent businesses nationwide.

Learn More

Or call us today
1-800-634-2669

© 2001 - 2024 National Federation of Independent Business. All Rights Reserved. Terms and Conditions | Privacy