JPMorgan Chase Chair Frenkel interviewed on Bloomberg TV:

In summary, the main points he made:

  • Believes the Fed should raise rates
  • Says "everyone expects it to happen"
  • Says low rates for so long have created issues in financial markets, and other distortions ... these have accumulated
  • "Normalization is called for, the economy is improving significantly; labor markets have not been as well behaved, so to speak, as they have recently; unemployment rate is low; the duration of unemployment has declined, even inflation on a medium-term perspective is getting towards the target. I would not hesitate at all, in fact I would definitely vote for a hike"

On the more risk:

the cost of an error

(by delaying a hike)

is relatively low to the cost of an excessively long delay