Caleb McCaleb Named to Economic Advisory Council
Caleb has been selected as one of two Oklahoma representatives on the Economic Advisory Council for Federal Reserve Bank of Kansas City. Caleb just returned from his first meeting with the Council, and shared what he learned. Bottom line is that the Fed has not raised the Federal funds rate since 2006 and it now sets at zero. The Fed Board of Governors is going to start moving rates up in small increments starting sometime between May and October. The first move will be 25 basis points and then a wait and see period before raising another 25 basis points. This is contrary to what other world central banks are doing as they are easing rates. Federal Reserve Bank of Kansas City President Esther George met with 10 representatives for 2 days as they shared their regional perspectives on the economy. The move is not intended as an inflation stop because it is only around 2%, but rather a return to interest rate normalcy. The Fed feels that there is no safety net since we are setting at Zero interest rate right now and in case the economy needs a boost.