Reasons To Raise Rates:
- Inflation Worries. As "readings on core inflation have been elevated, and the high levels of resource utilization and of the prices of energy and other commodities have the potential to sustain inflation pressures."
- Attract Inflow of Foreign Capitol.
- Recession Fears "The moderation in economic growth appears to be continuing"
- Don't want to cause a meltdown in the housing market. As there is already "a cooling of the housing market.