Lawrence summers urged the fed not to rush to raise rates


Moscow. December 15. Federal reserve system it is better to delay raising interest rates, than to hurry with this step, says the former head of the Ministry of Finance of the USA Lawrence summers.

“In a world where mistakes are inevitable, much better to make easily fixable mistakes than the mistakes that is difficult to fix,” he said in an interview with Bloomberg.

“The decision to postpone the increase in interest rates entails risks are easy to mitigate the consequent increase of the rates, while the decision to raise rates, if it is incorrect, correct it will be much more difficult” – believes the ex-Minister.

According to him, there remain significant questions about the prospects for economic growth, the acceleration of inflation to the target level in 2%, and overall uncertainty on financial markets.

Next Federal reserve meeting on 15-16 December. The futures market currently rates the likelihood of higher interest rates on the results of this meeting at approximately 76%.