Raghuram Rajan, the former chief economist for the International Monetary Fund (IMF), will argue that the Federal Reserve should consider raising interest rates when he speaks at the Fed’s annual symposium scheduled later this week at Jackson Hole, Wyoming. William White, former head of the Bank for International Settlements’ monetary and economic department, agrees with Rajan’s position, saying that “low rates are not a free lunch, but people are acting as though they are”.
“There will be pressure on central banks to follow an expansionary monetary policy, and I worry that one can see the benefits, but what people inadequately appreciate are the downsides,†noted White.
