Fed President: Be Prepared For Aggressive Rate Hikes (VIDEO)

As the OECD tells us that the global recession is likely ending, maybe some investors should be careful what they wish for.

Once we’re back to growth, the Fed could be forced to hike rates rather quickly as per Philly Fed President Richard Plosser. This could feasibly happen as early as 2010.

“Our exit strategy is really quite simple: we have to begin to pull back from our extraordinary programs, we have to begin to shrink our balance sheet, otherwise we will feel inflation in the months and years ahead,”

“And that may mean raising interest rates very rapidly, at least as aggressively as we cut interest rates, if the time is right.”

Bartiromo: “Is it fair to say that rates will go higher in 2010?” Plosser: “We’ll have to wait and see how the recovery evolves.”

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