Intrest rate hike by the US is long overdue Will it take place sooner than later?

While Europe and Japan have their own residual recessionary tendencies and the terror triggered uncertainty  and political chaos compounding the economic difficulties  the US  is on  a stronger wicket .it has come out of the recession and it is marching towards  close to maximum employment .stable prices indicating  a  better inflation performance and better outlook for economic activities have strengthened the case for a hike in interest rates .

The Fed chief Janet yellen hinted this  in a recent international  gathering of the central bankers and academics. She said however that the worrisome trend is,invesment demand is weak and the export has beenI hit by the strong dollar and that consumption alone is the solid driver of growth .

it can be recalled that for nearly a decade  the interest rate was kept at a ridiculously low level and only last December the Fed raised interest for the first time. Because of the global slowdown  and volatility in financial markets the subsequent increase in the rate  has been put off.

In the last eight years  We have had the central bankers attempting to stimulate economies  by cutting interest rates to near zero and flooding the banks with cash and more liquidity in the  economy. Soon the world also has to confront the long term  consequences of  of this ultra easy money policy and the ramification on inflation and exchange rates

The interest RATE AND EXCHANGE RATE CYCLE caused by the U S periodically will have more intensity in future so long as there is uncoordinated economic policies. It I also time the debate on globalization was revisited as the darker side of it is fully learnt both by the developed world