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Reactions to expectations for US rate hike

Reporter: Xue Miao 丨 CCTV.com

08-29-2016 11:34 BJT

Many in the US market had pushed expectations of a rate hike into next year. Let's find out what US bankers react on the potential increase in interest.

It's an ambitious goal these demonstrators say should be a top priority: full employment in the U.S.

Fed up coalition field director Shawn Sebastian said, "We are here to do everything we can to remind these Fed policymakers that we need an economy that works for all of us."

As Federal Reserve officials gathered here in Jackson Hole to plot the next steps for America's economy, some members of the Fed- Up Coalition of community and labor groups spoke of their financial struggles.

Ramona Charles, an unemployed person in Houston said, "I've been looking for a job for like seven months and due to my qualifications, it just seems like I go on interviews and I just haven't gotten a job yet."

Myra Clemens from Action United Philadelphia, said, "Every single day, I'm getting up, going to work, working hard and I feel that I'm treading water. That ain't right. That's not right."

To help low-wage workers, this group wants the Fed to keep fueling the economy by keeping interest rates very low.

Josh Bivens from Economic Policy Institute, said, "The Federal Reserve starts slowing the economy, it starts halting progress in reducing unemployment before the benefits of that reach the last people to be hired."

On Thursday, in this highly unusual meeting, 10 central bankers heard that message in person.

Rod Adams from Neighborhood Organizing for Change, said, "If you decide that we're at maximum employment now you'll be leaving us behind, pulling up the ladder right after you've climbed it."

President of Federal Reserve Bank of San Francisco, said, "We're gonna keep this economy growing. We're going to run it hot, get unemployment down lower."

Officials say full employment is one of their goals.

President of Federal Reserve Bank of Kansas city Esther George said, "My objective is absolutely not to slow down the economy. That would be irresponsible."

But they also worry that raising interest rates too late could cause inflation to roar to life.

President of Federal Reserve Bank of Boston Eric Rosengren said, "One of the ways that you get maximum employment is to make sure that you don't allow excesses to build up to the point that you have a recession which hurts everybody in the room."

President of Federal Reserve Bank of Richmond Jeffrey Lacker said, "You're killing me. When are you gonna raise interest rates so that senior citizens have enough income that they can get by."

It's a tricky balance, these bankers said, making the economy work for everyone.

President of Federal Reserve Bank of Dallas Robert Kaplan said, "These are issues we care about, we want to understand better."

The debate over monetary policy and the Federal Reserve's role in steering the economy is front and center like never before.

President of Federal Reserve Bank of Minneapolis Neel Kashkari said, "And so honestly this meeting today is enormously helpful." "This is not the first discussion. It's one of many and they're many more to come."

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