Sunday 13 December 2015 8:50 pm
The zero interest rate policy has already fuelled considerable misallocations of capital, asset bubbles, and a releveraging of corporate America, which is putting the US credit market in a very unstable situation.
There is no happy ending to extra-accommodative policies. Faced with a choice of two evils, Yellen should go for a “dovish hike” now, even if she risks having to backtrack later in 2016, rather than keep kicking the can down the road, accumulating financial risks in the system.
As the FOMC meets this week, is it now imperative that the US Fed starts hiking interest rates?
City A.M.'s opinion pages are a place for thought-provoking views and debate. These views are not necessarily shared by City A.M.