UCF professor and economist Sean Snaith says the Federal Reserve risks repeating "sins of the past" if it doesn't raise key interest rates. Snaith predicts the end of "excessively loose monetary policy" in his most recent national forecast.
After a report from the Fed about continued economic growth, the central bank should start raising interest rates by the summer. If not, the economy could overheat, leading to inflation, Snaith says. Plus, he adds, that "leaving interest rates too low for too long isn't the cure for the jobless."
"The Fed kept interest rates too low, too long in the wake of the 2001 recession, and that's what led to the asset bubble that ultimately made this recession as bad and as deep as it was."
Article from the Orlando Busines Journal
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