Officials of the U.S. Federal Reserve (Fed) made the decision to continue to cut the massive bond buying program.
But it seems that in the future the Fed will have to make a difficult decision: choose when to raise interest rates. The Fed President Janet Yellen pointed out that there are three “big” issues that officials should discuss;
- The state of the labor market
- Compliance with the inflation target of 2%
- Factors that could threaten the economic recovery.
Some analysts are already starting to see a rise in interest rates in 2015 if economic conditions are thin.
Yellen and colleagues will discuss what kind of economic conditions define the stage for a rise in interest rates. It is necessary that the Fed clearly discuss on this topic in order to more accurately anticipate when it will happen.