The Federal Reserve is stated to hold a symposium on ‘interest rate hikes,’ which is a much debated and polemical issue for the last three years, called on central bankers to discuss and develop a consensus about interest rate hikes in the US. However, the consensus came out exactly the opposite, and this led to an outburst of anger from the public because they supposed that Fed policymakers, which are believed to have doves that voice against aggressive rate hikes so that a balance between unemployment and sustainable economic growth can be maintained, will consider worsening unemployment and form a consensus against interest rate hikes.
Talking on the sidelines of the meeting, Robert Kaplan, the Dallas Fed President, said that the Federal Reserve is taking the effort to strengthen the economic system, and all efforts are in that direction only. Fed Chairman Jerome Powell is likely to provide some information with regard to future interest rate hikes, which will be the seventh time since the end of 2015. One of the centrists, Kaplan, opined that we must increase rates at least threefold in next 12 months to cramp the overheating economy and impart an economic growth of 3% this year.
On the other hand, differences have been seen among the policymakers. The one came from Esther George, the President of the Kansas City Fed, who objected to higher rates in 2016. It is expected to have another two hikes this year because the Fed aims for 2.5-3%. Well-known doves, Charles Evans and Eric Rosengren, the Presidents of the Chicago Fed and Boston Fed respectively, surprisingly consented to rake hikes. Be that as it may, Donald Trump also appears to be unhappy with the decision of rate hikes. At the venue where Kansas City Fed is holding the meeting on Saturday, around 50 workers protested against increasing rates, which may cause even more job losses.
Nevertheless, Kaplan, one of the centrists, is giving an assurance to people that this move from the Fed is only for the betterment of workers.