Will interest rates rise by next spring?
Jonathan Horn, Roger Showley, U-T SAN DIEGO
Saturday, March 29, 2014
Kelly Cunningham, National University System
Janet Yellen erred by stating a definite time frame for interest rates to rise in six months. Her mere unscripted remark caused markets to roil. The Fed's time table of reducing stimulus depends upon somewhat indefinite signals for rising employment and inflation, while their prescription of genuine economic progress remains highly suspect. As the economy will continue to weaken, the Fed cannot only NOT raise rates but resort to abort further tapering of QE. In the meantime inflation will further escalate continuing to destroy the value of the U.S. dollar, inhibiting real economic growth, and the phony economic recovery will falter.