Raising Interest Rates

I am worried about misallocation of capital & the wrong type of risk-taking resulting from extended periods of very very low interest rates.

Tight labor markets raise many boats. Don't let the tide out prematurely.

As Gretzky said, "skate to where the puck will be." Inflation normally takes time to form, often 2 years or more. The Fed can judge timing.

Go look at their forecasts for the last 6 years. thank god they didn't act based on those.

i THINK risks of too little growth outweigh the risks of overshooting inflation target. judgment call bc little evidence is available

Confusion here between rates of change and levels. The Fed should tighten when expected inflation is above target, not just when rising.

The recovery is anemic and I am more concerned that it will fizzle than I am worried about inflation. The Fed should not be too cautious.

The statement would appear to be inconsistent with the empirical evidence of past inflation episodes.

Models focusing on uncertainty about labor mkt slack and the real rate might imply this; financial stability concerns can cut the other way
-see background information here

The Fed has been and should be forward-looking.
-see background information here

Imprecisely worded but gets the basic idea. Major point is that Fed should make sure US is not at a low nominal rate equilibrium.

Other factors, such as unemployment and participation rates, should also enter the Fed's decision.

The Fed should raise rates when forecast inflation is above target. Now the hard question: what forecast is better than current inflation?

Cost of waiting too long < cost of shooting too soon. Those predicting imminent inflation have been wrong for years.