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Sunday, July 14, 2013

Fed mulls lowering unemployment threshold for rate hike.

With bond yields rising, Fed policy makers are considering reducing the 6.5% unemployment threshold for increasing the bank's key interest rate from rock-bottom levels. Market movements suggest that investors believe rates will rise just months after the end of the Fed's QE program, which could come in mid-2014. Ben Bernanke and co. have been trying to convince otherwise, but not totally successfully. Lowering the unemployment threshold, so the theory goes, could be more persuasive.

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