BOSTON/SAN FRANCISCO, June 5 (Reuters) – A pair of Federal
Reserve officials on Wednesday warned that raising U.S. interest
rates to fend off bubbles and other troubling signs of financial
market unrest could undercut the Fed’s efforts to put the U.S.
economy on a sounder footing.
But they embraced broadly different approaches to address
the possibility that, as policymakers from Fed Chair Janet
Yellen on down have said, extremely loose monetary policy may be
encouraging businesses and households to take risks that set the
financial system up for another crash.
By Ann Saphir
(Reuters) – Richard Fisher, one of the Federal Reserve’s most ardent policy hawks, said on Tuesday he would favor ending the U.S. central bank’s massive bond-buying program in October, but said he does not expect the Fed to start raising interest rates until next year.
“The odds are slim” of a rate rise immediately after the bond-buying program is ended, Fisher, president of the Dallas Federal Reserve, told Reuters in a telephone interview.