Four veterans of the Federal Reserve – Brookings’ Donald Kohn, former vice chair of the Federal Reserve Board, and former staff economists Julia Coronado, Jon Faust and Joseph Gagnon – agree that the Fed is unlikely to raise short-term interest rates at its September 17 meeting, but barring some major surprises in the economy, all four expect a rate hike before year-end.
Ms. Coronado, now at Graham Capital, put the odds of September rate hike at less than 20%. The others put the odds at higher than that, but less than 50-50.
The four Fed veterans spoke at a forum sponsored by the Hutchins Center on Fiscal and Monetary Policy.
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Commentary
Four former Fed economists agree: Interest rate hike unlikely in September
September 4, 2015