MADISON, Wis. (10/20/14)--Mike Schenk, Credit Union National Association vice president of economics and statistics, discussed the current state of interest rates in an article that appeared online in Money magazine, part of the Time Inc. network.
The article explained how central bankers have called for raising interest rates in the near future. But recent economic data and the huge stock market sell-off has dampened some of that discussion.
Some Federal Reserve officials have said they expect to raise rates by the middle of next year thanks to a modestly expanding economy and stronger job growth, but Schenk opposes this idea.
"Until we see wages expanding faster than the rate of inflation, and significantly so, we won't see much in the way of inflation pressure," Schenk told Money. "Why raise rates if you don't have inflation?"
To read the full article, use the link.