1369 WordsDec 3, 20156 Pages

Econ Macro Memorandum
To: FOMC
From: Nicholas W Gallo, LLC.
Date: 12/1/2015
Subject: Raising Interest Rates
To members of the FOMC, this is my proposal that you take action at your next meeting and gradually raise the interest rates to %1 within the first quarter 2016.
• Members
o Janet L. Yellen, Board of Governors, Chair o William C. Dudley, New York, Vice Chairman o Lael Brainard, Board of Governors o Charles L. Evans, Chicago o Stanley Fischer, Board of Governors o Jeffrey M. Lacker, Richmond o Dennis P. Lockhart, Atlanta o Jerome H. Powell, Board of Governors o Daniel K. Tarullo, Board of Governors o John C. Williams, San Francisco
• Alternate Members
o James Bullard, St. Louis o Esther L. George, Kansas City o Loretta J. Mester, Cleveland o Eric Rosengren, Boston o Michael Strine, First Vice President, New York
Proposal
Since the Great Recession, the Fed has laid out and implemented a fantastic recovery plan through monetary policy over the past seven years. However, with interest rates still around zero, and unemployment tightening up, I feel it is time to begin raising the interest rate. The rate does not need to jump to typical rates of 3% or 4%, but it cannot be as small as 0.25%. According to Michael Madowitz, “the Fed would have to continue engaging in a stimulus program of quantitative easing (QE) to loosen monetary policy. If we can get rates up to 1% or higher, that’s a reasonable debate to have—a 50 to 100 basis-point rate cut may be enough

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