In the US, may increase the interest rate this summer

The expediency of the increase will be discussed on June 15 at a meeting of the leadership of the Federal Reserve System. Photo: depositphotos.com

The president of the regional bank of the US Federal Reserve reported on Monday that world markets seem to be set to raise interest rates this summer.

According to James Bullard, president of the Federal Reserve Bank in St. Louis, his opinion should not be “too surprising,” given signs indicating that the gross domestic product will rise in the second quarter — the cost of all goods and services produced in the United States.

Bullard voiced his comments at an international conference in Seoul after the US Department of Commerce released on Friday, revised data showed that during the first three months of this year, the economy grew faster than previously thought.

At the same time, he declined to say whether the Federal Reserve System, which serves as the central banking system of the United States, should increase the discount rate in June or July. Representatives of the twelve regional banks of the Fed will meet on June 15.

The last time the Fed raised the discount rate in December last year - for the first time in almost ten years.

The discount rate remains unusually low after it was lowered during the 2008 financial crisis of the year in order to stimulate economic growth. Uneven and scattered economic recovery forces experts to discuss the question of when and how much the rate should be raised. Too early an increase in it can lead to a resumption of economic recession. If you wait too long, a low rate can cause inflation, which can also damage the economy.

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