Fed forecasting tool calls for immediate rate hike, Plosser says

By Jonathan Spicer (Reuters) - A forecasting tool developed by the Federal Reserve recommends that U.S. interest rates should be hiked immediately to keep pace with the improving economy, according to a paper by the soon-to-retire Philadelphia Fed President Charles Plosser. Plosser, among the minority of hawkish monetary policymakers, co-published research showing the Fed-developed model calls for rates to jump from near zero to 0.5 percent in the fourth quarter of 2014, and to rise to 1.1 percent by the second quarter of 2015. ...

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