SAN FRANCISCO (Reuters) – The Federal Reserve could bolster its commitment to ultra-low interest rates by ruling out a rate hike until inflation heads closer to its 2-percent goal, according to research published Wednesday by the Cleveland Fed.
The study plunges the usually low-profile regional Fed into one of the most pressing debates among U.S. central bankers: how best to keep market rates from rising to potentially growth-sapping levels once the Fed begins to withdraw its massive monetary stimulus.
SAN FRANCISCO, Dec 3 (Reuters) – The Federal Reserve has
more reason than ever to cut a key U.S. lending rate it has
kept at just above zero since the depths of the financial
crisis, a top Fed policymaker suggested on Tuesday.
The Fed set the interest rate it pays banks on their excess
reserves at 0.25 percent when it introduced it in 2008, and it
has sat there ever since.