Our rate moves will have an impact on the economy in 2013. Whether we raise or lower rates depends on how the economic situation develops.
Well, rates would go up whether you deregulate or not, and of course, the rates that are going up right now on the electricity side are still within the regulated framework.
The monetary policy committee could either keep rates constant, increase them, or bring them down. There are three options possible compared to when it is accommodative.
The big question is: When will the term structure of interest rates change? That's the question to be worried about.
I did not come to Washington to raise the electricity rates by as much as $40 per month as this plan would do.
I believe any decline would lock in a Fed increase with some certainty.
If it is a small rate raises, [there will be] no impact.
It's sort of like a teeter-totter; when interest rates go down, prices go up.
When interest rates are high you want the average direction in which interest rates are moving to be downward; when interest rates are low you want the average direction to be upward.
Under a cold turkey strategy, at each policy meeting the Federal Open Market Committee would make its best guess about where it ultimately wants the funds rate to be and would move to that rate in a single step.
I speak to lots of people around the world, and no one would tell you that 25 basis points will make a difference to them.
