Former Fed Member Says September Hike Still On

An interest rate hike by the U.S. Federal Reserve should come in September, Richard Fisher, former president and chief executive of the Dallas Fed, told CNBC Tuesday.

“The markets, to me, have already discounted a first rate rise and (Fed Chair) Janet Yellen has made it very clear it’s being considered and is on the table,” he told CNBC Europe’s “Squawk Box.”

“I would personally expect that the odds are highest for September. You don’t want to do something in December because that’s when the markets are so thin and you could have a reaction that is perhaps more exaggerated.”

Following the financial crisis, the Fed cut interest rates to record lows and implemented quantitative easing (QE) in an effort to stimulate growth in the U.S. economy. When the country’s economy started to pick up last year, the Fed tapered off its monthly bond-buying program and now all eyes are on the first rate hike.

via CNBC

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza