The Fed To Raise Interest Rates Early?

interest rates

The US economy is going full speed ahead and, as a consequence, the central bank has halted QE. The Federal Reserve chose to switch off the money printer and it seems like most investors did not have too much of a problem with that.

What happened after that, all went really fast. The Bank of Japan and the European central bank announced additional stimulus packages to support their respective economies and all of that happened in a time span of only 8 days.

The new stimulus packages of the Bank of Japan and the European central bank have made investors rather happy once again. Nevertheless, there are more than a few people out there that have told us to not throw caution to the wind.

The Fed Raises Interest Rates Early?

According to a few economists, for example, the odds of the Fed raising interest rates sooner than expected are only getting higher. Inflation is well on its way towards the target of 2 percent, which is the last piece of the puzzle really.

The expectation is that the inflation target of 2 percent will be reached by the end of 2016. Next to that, the US macro figures are improving at a decent rate, which puts the previously announced timeline in question. Some say early 2015, others in the summer of 2015.

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