Fiscal policy makers from around the world encourage U.S. Fed officials to not delay start of interest rate hikes. Kelsey Hubbard reports.
Anticipating when the Federal Reserve will hike U.S. interest rates for the first time since 2006 is becoming more and more an international sport. In meetings last week at the Federal Reserve Bank of Kansas City's Economic Symposium in Jackson Hole, Wyoming, an international group of fiscal policy makers told their American counterparts they are ready for a U.S. interest rate hike. They would prefer the Federal Reserve make the move without more delay. Many see the continued uncertainty over the rate hike as contributing to volatility in global markets. Agustin Carstens, the top central banker in Mexico, said in a Reuters interview that: "If the Fed tightens, it will be due to the fact that they have a perception that inflation is drifting up, but more important that unemployment is falling and the economy is recovering, For us, that is very good news." Most central bankers from emerging markets contacted by Reuters at Jackson Hole, and over the past month, shared Carstens' view. The Fed could decide to hike rates at its next meeting September 16th.