The Wall Street Journal blogged Wednesday, "Fed's Fisher Says Delay in Raising U.S. Interest Rates Could Cause Recession." The article explained, "Dallas Federal Reserve President Richard Fisher said he's concerned that if the central bank waits too long to raise interest rates it could throw the U.S. economy into recession, speaking in an interview in the German daily Handelsblatt. If the Federal Reserve acts too late, inflation, and the economy's reaction, could be all the stronger, "plunging the economy into the next recession," he said. "It's like duck hunting, you need to aim ahead of the target, otherwise you miss," he said. Mr. Fisher said interest rates could move higher sooner than markets anticipate. "The markets assume that it will happen in summer. I think it could happen earlier -- but of course I could be wrong," he said." In other news, the Financial Times wrote "Europe Money Fund Yields Set to Go Negative". Here's an excerpt: "Risk-averse investors seeking short-term safety will soon have to pay for the privilege as yields on ultraconservative money market funds are set to go negative. Euro-denominated money market funds, which act like cash reservoirs in which companies and banks can deposit or borrow short-term money, are yielding virtually nothing even after many funds waived management fees and refused fresh deposits to avoid diluting existing investors' returns. But yields for a big part of the E1tn industry are set to decline below zero within the coming weeks as they track the record-low lending rates set by the European Central Bank, according to a report by Moody's. "It's not a question of if but when," said Yaron Ernst, managing director of Moody's managed investments group."
