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Fed to Make Projections for Short-Term Interest Rates

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  • Description

    FBN's Liz MacDonald on the Federal Reserve's plans for its first rate forecast.

  • Duration 2:40
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It's down was this reassuring for your confidence the Federal Reserve kicking off the new year with a bang with Central Bank will now we're BL.

Where it thinks interest rates will -- yeah pretty big deal was McDonnell from Fox Business -- -- for itself what has the Fed decided here in the -- decided that it seventeen.

Five board governor and twelve regional president.

Will be able to forecast where these individuals expect the Fed Funds rate will go.

This will happen later in the month after the January 2425 meeting.

Already the Fed gives forecast -- economic growth inflation and joblessness.

For the first time ever bid individuals that the Fed will be able to give their own forecasts -- and expect.

Interest rates to go these interest rates matter for investors from farmers in the country.

And also the Fed fund futures markets aren't predicting -- for first Fed Funds rate hike will happen.

And -- 2014 remember who it was initially the Fed isn't never telegraph before other central banks overseas do.

And daily basically have meetings and you know discussed the minutes of the meetings and then you can divine -- we haven't been through it's gonna go out now for the first time in a telegraph.

Well wasn't the end of an act of the am.

We've I've got another question ask -- but it wasn't -- Central Bank though.

The birth of the independents -- jobs at the Federal Reserve really born because the Fed did essentially fix.

Interest rates in conjunction with the treasury back in the nineteen yeah authorities that's right at it and we kind of face that same.

Troubling issue today.

Because we need the Fed to keep interest rates low even longer term right because the country is deep in debt needs to keep our -- not.

The big serious -- facing the Fed you're right dig in -- -- basically 977 answering -- a dual mandate come in right at a congress imposed upon the Federal Reserve but you know and this of the Federal Reserve is I think Leary.

Of triggering another financial crisis as happened with the Mexican debt crisis.

In 1994 when the -- -- -- you know index to the dollar peg to the dollar and then inflation start to take hold and Mexico collapsed.

I'll also we know that double dip recession it's effectively put in place.

And triggered by Paul Volcker you know it's trying to wring inflation out of the economy spiking interest rates higher in this country to 19%.

Ben Bernanke and July of 2003 gave an important speech when he talked about.

Inflation and Fed Funds and why the Fed Funds rate was kept low at 1% the question for the Federal Reserve is when -- you hike rates.

How will you hike rates and -- that due to the markets -- that due to investors.

You know -- -- 1% kept the that the housing bubble.

Going very nicely during the early part of last decade he's -- dead Liz thank you Liz MacDonald's sure changes at the.

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