More Hints From Fed Point to a December Rate Increase

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November 09, 2015

A new report released by the Federal Reserve shows a more robust economy: new jobs were added, unemployment fell, and wages grew—enough signs to make economists speculate interest rates to increase in December.

“But just because the Fed probably will raise rates in December doesn't mean it should,” writes Matt O’Brien, reporter for economic affairs at The Washington Post.

If the Fed waits too long and inflation takes off, it can deal with that problem pretty easily by raising rates a little faster than it wanted to. But if doesn't wait long enough, it might have to reverse course and cut rates back to zero,” he argues.

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