RateAPY

Fed President Has Higher Interest Rates in Mind

Posted by: RateAPY Bank Rates News
May 31st, 2010

Jeffrey Lacker is the President of the Federal Reserve Bank in Richmond, Virgina. He is not yet a voting member of the FOMC but does attend and contribute to the FOMC meetings on interest rates. He is beginning to make statements about his bullish view on the U.S. economy and the possibility of higher interest rates.

Interest Rates: Direction Still Uncertain

The Fed’s current policy is that interest rates should remain low for an “extended period.” Only one voting member, Thomas Hoenig of the Federal Reserve Bank in Kansas City, has publicly come out against the current policy. Lacker’s new stance adds weight to Hoenig’s side of the argument.

When the Feds start to raise interest rates, the yields you can earn on your checking accounts, savings accounts, money market accounts, and certificates of deposit should go up.

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