Experts say, whether the Federal Reserve raises short term interest rates is becoming less important than establishing a clear position on rate hikes for the rest of the year. Jeanne Yurman reports.
As the September 16th meeting of the Federal Reserve nears, anticipation of a first possible rate hike in nearly ten years is ramping up. The Fed is gauging economic data to decide whether to move. Of utmost interest: how the labor market is faring. Wednesday payroll firm ADP reported that the pace of hiring in the private sector last month remained steady, but was a bit lower than forecasts The report can often signal what's to come for the closely watched monthly jobs report that follows. But, even if Friday's labor report is soft, economist Maria Fiorini Ramirez of MFR, says what's key is not whether it sways the Fed to hike interest rates. The key is that it acts, period. MARIA FIORINI RAMIREZ, CHIEF EXECUTIVE OFFICER, MFR (ENGLISH) SAYING: "We've all been on pins and needles in terms of when they're going to do it, so, they should say, that because of weaker growth and all the other reasons that they eloquently discuss, say that we're not going to do anything or do it, and say this is it for now, and we'll take a continuous look at what develops in the quarters ahead." In his monthly newsletter, famed investor Bill Gross insists it's too late for the Fed to act. Raising rates now, amid global financial market and economic uncertainty, would create "self-inflicted financial instability." If the Fed does raise rates, both experts agree indicating it's a 'one and done' increase - that is, no more hikes for the rest of the year - would remove some uncertainty for the global economy to help it move forward.