Fed Increase for Wimps: Economists Propose 1/8 Point Rate Rise
Two Reasons the Fed May Hold Off on a Rate Hike
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There’s a more palatable option for those investors too wimpy to stomach the quarter point increase in interest rates from the Federal Reserve that may come this week: a 12.5 basis point shift.
As the Fed’s “will it, won’t it?” debate over tightening monetary policy enters its final hours, economists from ING Bank NV, UniCredit SpA and VTB Capital Plc suggest the novel increment would show the Fed is balancing the needs to respond to an improving economy while minimizing market disruption.