They want to raise rates to show that they can but also so they can be lowered in downturn which might not be too far off. If rates were now 3% say (low by historical standards) they would be more likely to lower rather than raise them. That's the ugly truth and no one really can be sure where this is going but it doesn't look rosy.
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Roubini Now Looking At December Rate Hike And Beyond, Makes Investment Recommendations
They want to raise rates to show that they can but also so they can be lowered in downturn which might not be too far off. If rates were now 3% say (low by historical standards) they would be more likely to lower rather than raise them. That's the ugly truth and no one really can be sure where this is going but it doesn't look rosy.