Two other Fed presidents suggested the US central bank to raise interest rate. San Fransisco's John Williams said two or three rate hike in 2016 is reasonable. While Dallas' Rob Kaplan reminded to be patient.
The house prices peaked in 2006, and then it fell about 30 percent until it hit bottom in 2011. After that house prices have been increasing steadily and it is almost close to its pre-recession peak levels. However, the San Francisco Federal Reserve claims this is not another bubble.
American employers increased jobs at a quick pace last September, a signal that the labor market is close to full strength. This trend could possibly persuade the Federal Reserve to raise interest rates at one of its two remaining meetings this year, according to the Business Insider.
The U.S. economy is probably not as weak as current estimates suggest, a paper published Monday by the Federal Reserve Bank of San Francisco said, potentially adding to arguments for raising interest rates sooner rather than later.
San Francisco Federal Reserve President John Williams said on Friday that very low growth with very low interest rates was a concern globally.