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Raising Interest Rates Recommended by Fed Pres Bullard

Posted by: RateAPY Bank Rates News
June 14th, 2010

As mentioned in a previous Money News blurb, three Federal Reserve Bank presidents were openly talking about the FOMC beginning to raise interest rates. Now a fourth may be joining their camp.

Higher Interest Rates Urged by Another Fed Pres

James Bullard, president of the St. Louis Federal Reserve Bank, and a voting member of the FOMC, said in a recent speech in Tokyo that he believes a “powerful” global economic recovery is in progress and the U.S. economy is on the verge of GDP recovery, which indicates “fiscal consolidation” is needed now. Bullard stressed that our national debt level must come down or the U.S. will risk losing credibility globally.

The recent language of Hoenig, Lacker, Lockhart, and now Bullard, point toward the FOMC tightening interest rates. Once the FOMC raises interest rates, your checking account, savings account, money market account, and certificate of deposit will likely earn higher returns.