ZEW President Clemens Fuest on Fed Decision: "Interest Rate Hike Was Overdue"

The US Federal Reserve System (Fed) raised the target range for the federal funds rate to 0.25-0.5 per cent. ZEW President Professor Clemens Fuest comments on this decision.

"The Federal Reserve rate hike was overdue. However, there is still a long way to go before monetary policy will go back to normal. For example, it is unclear when the Fed will start selling the bonds it has purchased during the past few years. Given the slowdown in the emerging marketsand the fragile economy in the eurozone and Japan, economic recovery is likely to continue at a restrained pace in the US. It may take time before we see further interest rate hikes."

For more information please contact:

Professor Clemens Fuest, Phone +49(0)621/1235-100, E-mail fuest@zew.de