Fed Signals No Hurry to Raise Interest Rate

The article “Fed Signals No Hurry to Raise Interest Rate” was published on September 17, 2014 by The New York Times and written by Binyamin Appelbaum. Binyamin Appelbaum, graduated from the University of Pennsylvania. He has previously worked for the Florida Times Union, the Charlotte Observer, the Boston Globe, and The Washington Post. While working at the Charlotte Observer, he led a team of reporters to investigate the sales practices of Beazer Homes USA, one of the largest homebuilders in the United States. The Observer's reporting led to FBI, IRS, SEC, and HUD investigations of Beazer Homes, which has since stopped making mortgage loans nationwide. In this article, Mr. Appelbaum describes that the Federal Reserve is in no hurry to raise the interest rates even though the economy recovery has been improving these recent months.
The article explains that according to the central bank’s chairwoman Janet L. Yellen, one of the main reasons interest rates have not increased is because “there are still too many people who want jobs but cannot find them, too many who are working part time but would prefer full-time work, and too many who are not searching for a job would be if the labor market was stronger”. In addition, a recent government report offered a reminder that the economy still remains weak. The Federal Reserve favors a 2 percent annual inflation rate as the strongest pace for the economy, but inflation measured by the Consumer Price Index increased just 1.7 percent in the past twelve months. A forecasts of Fed officials recently published showed that inflation is expected to remain below 2 percent during 2015. As a consequence, the Federal Reserve plans to continue holding short-term interest rates near zero.
According to this article, most likely the Federal Reserve will increase the interest