The Federal Reserve is considering raising interest rates again and possibly adding to the Fed-bond holdings, but there’s been little movement so far on the topic, a tech industry analyst said on Tuesday.
“I don’t think they’re going to do anything to boost the debt levels, and I don’t see a lot of progress from either side on the Fed bond-buying,” said Jonathan Zittrain, founder and managing director of Quantcast.
He said the Fed should focus on keeping inflation in check and on helping consumers get a little relief from higher taxes and higher borrowing costs.
In an attempt to prevent another round of turmoil, the Fed last week increased its benchmark interest rate from 2 percent to 3 percent, but some analysts think the move is not enough to reverse the economic slowdown and raise inflation above the Fed target of 2 percent.
The Federal Reserve raised interest rates in February to help prevent a repeat of the financial crisis.
In the wake of the crisis, bond yields rose by a wide margin, from 5.2 percent in September 2009 to 6.6 percent last month.