T. Rowe Price Chairman Says Fed Should Raise Rates
BALTIMORE — Continued uncertainty about whether the Federal Reserve will raise interest rates shows the U.S. central bank is “more frightened of its own shadow” than it should be about boosting rates, said Brian Rogers, chairman and chief investment officer of Baltimore-based mutual fund company T. Rowe Price.
Short-term rates should be about 100 basis points above current levels, Price told an estimated 1,000 members of the Financial Planning Association who convened in Baltimore this week. However, Rogers said he would be more worried about the potential outcome of the U.S. presidential election than the Fed.
If Rogers could send a direct message to Fed Chair Janet Yellen, he said he would advise her to raise rates. If he was a Fed governor, he told attendees he would vote to raise rates next week, regardless of the upcoming presidential election.
The United States is in the seventh year of an economic recovery and can withstand an interest rate hike, said Rogers, who added that he thinks it should have happened by now.
Even though Maryland is the home state of sports apparel manufacturer Under Armour, he cited the slogan of its bigger rival NIKE and said Fed Chair Yellen should “just do it” and raise interest rates.
Read the rest of this article on StockInvestor.com.
Paul Dykewicz is the editorial director of Eagle Financial Publications, editor of StockInvestor.com, a columnist for Townhall and Townhall Finance, and the author of an inspirational book, “Holy Smokes! Golden Guidance from Notre Dame’s Championship Chaplain,” with a Foreword by legendary football coach Lou Holtz. Visit Paul’s website at www.holysmokesbook.com and follow him on Twitter @PaulDykewicz.