The head of the Federal Reserve Wednesday hinted at an increase in interest rates but Janet Yellen was very careful not to say how much or when. Creighton University Economist Ernie Goss interprets her message.
Goss says, “I think it is time to move ahead but it is going to be a gradual increase. Don’t look for rates to rise dramatically, especially on mortgage rates. These are mostly short-term interest rates, automobile loans for example, will probably go up between now and June by 1/4%.”
There has not been an increase in interest rates for nine years. Goss says the Federal Reserve is trying to head off any future inflation and interest rates now are the lowest in the 100-plus years of the Federal Reserve.