Discuss why is Fed finally considering starting to raise the interest rates now, given that they have held short term rates as low as possible (<.25% per year for low risk short term financial instruments) since late 2008?
If it becomes evident that majority of policy makers on Fed are planning to start raising short term rates in last six months of 2015 rather than continuing their policy of rates<.25%, how would expectations of AD growth over the coming 12 months be affected?