The Federal Reserve’s assurance that interest rate hikes won’t come any time soon pushed stocks higher, with the Dow Jones Industrial Average surging 400 points on Thursday, which hasn’t happened since 2011. Still, analysts say the Fed is likely to raise rates next summer, but given the slack in the labor market, stubborn wages and falling inflation, a summer rate hike may be too soon. TheStreet’s Scott Gamm speaks with Ben Garber an economist with Moody’s Analytics to discuss why the Federal Reserve might wait until third quarter of 2015 or even later, to raise short-term interest rates, which have remained near zero for six years.
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