Former Fed Official Says Rates Should Have Been Lifted Months Ago

“The Fed is hostage to financial markets,” Andrew Huszar, former Federal Reserve of New York official, said Monday on CNBC’s “Closing Bell.” “The Fed’s job has historically been to monitor the markets, but it expanded its role into a lot of markets dramatically in a short period of time .. It’s forced the fed to solicit a lot more input from market participants.”
Though Huszar said he would be “shocked” by a rate hike on Thursday, he thinks rates should have been raised months ago.

“There is real debate within the Fed about the benefit to the economy,” Huszar said. “The cheap funding is causing a lot of unproductive games in the markets…. The easy money policies really aren’t making a meaningful enough impact for Main Street, compared to the costs.”

via CNBC

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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 has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. 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