Fed policy makers to raise interest rates before the end implied.

Federal Reserve (Fed) officials, the most senior decision-making Stern (Gary Stern) suggest Fed will raise interest rates before the end of this year. .He said, Fed should not wait until the U.S. housing market and stabilize financial markets after the start raising interest rates. .<P> (Http://finance.) Stern said: "We are in the state will face a number of risks, and these risks may have occurred. Among those risks, I am more worried about the inflation outlook." He is currently .Minneapolis Fed branch president in charge of this year as the Fed interest rate decisions of the Federal Open Market Committee (FOMC) of the members. .</ P> <P> Stern's words made the market for Fed will raise interest rates before the end of this year's forecast is more intense psychological. .Traders expected before the Fed would raise rates in October this year, the probability was 58%, Stern speech, the estimated probability of higher interest rates to 64%. .According to records of FOMC 6 February meeting, some policy makers support the early rate hike. .According to futures prices, Fed rate hike before the end of this year, the probability was 79%. .</ P> <P> 63, Stern said that financial markets can not do-wait for the return to normal, strong growth in economic recovery, but to reverse the situation to practice what you preach, Fed action is to affect the future economic, rather than .current economy. .Stern believes that the U.S. Treasury Department's "two-bedroom (Fannie Mae and Freddie Mac)" relief program will help to prevent further U.S. housing market and the economy go bad. .</ P> <P> Stern, the credit crisis comparable to the U.S. in the early 1990s that the credit crisis, that makes the U.S. economy for almost three years. .But be optimistic assessment of Stern, the International Monetary Fund (IMF) that the U.S. economy the credit crisis is the worst since the Great Depression a financial impact; Fed Chairman Alan Greenspan said before, the credit crisis .more than half a century the greatest. .</ P> <P> Stern said the current U.S. consumer prices rose significantly too high, he was worried that this will affect people on the core consumer price inflation and expectations. .Stern said that as long as energy and food prices stabilize, the core consumer price index next year should be to go slow. .</ P> <P> In addition, although U.S. Treasury Secretary Henry Paulson has said the banking system "safe and sound", and to stabilize the financial system as a priority, but warned that the recovery will take "months." .He said that due to the mortgage crisis, financial market volatility and high energy prices dragged down U.S. economic growth has slowed, it will take "several months" to recover. .</ P>.