Posted on 07/07/2015 6:50:22 PM PDT by Citizen Zed
Washington. A rise risks adding to the growing economic and political threats to US growth, the IMF said in a health check on the world's largest economy.
Many economists had forecast a rise in September, although recent economic and jobs data had dampened expectations, BBC reports.
The Washington-based IMF also warned that US share prices were hitting unsustainable levels.
A rate rise would trigger more gains in the value of the dollar, something that the IMF has said previously this year could stall growth and impact across emerging markets.
The dollar has risen about 20% against a basket of currencies during the past 12 months.
On Tuesday, the IMF said "growth could be significantly debilitated" by another rise in the dollar. Barring a major change in circumstances, the organisation urged keeping rates at the current 0.25% "into the first half of 2016 with a gradual rise in the federal funds rate thereafter".
Interest rates can never return to normal until after TEOTWAWKI. It would blow up the economy paying interest on the deficit. That’s why they got out the staple gun and stapled them to zero-ish via the central bank.
Raise rates only after a conservative wins the election.
That’s right. That will be when they pull the plug on this corpse of an “economy.”
I think what the IMF is saying is wait until a republican is president, then raise the rates, and the painful an inevitable correction will be blamed on republicans.
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