The Federal Reserve's surprise move to raise the discount rate is not likely to affect other interest rates but it shows inflation hawks are gaining ground, Giles Keating, head of Credit Suisse global economics and strategy, told CNBC Friday.
"In terms of day-to-day interest rates it has very little significance, it is symbolic, but I think the symbolism is important," Keating said.
Many Fed officials seem to be concerned that the central bank risks getting behind the curve, he explained.
"I think this is the signal that the Fed does have its eye on those longer-term risks and although it's very, very slow and this is just symbolic, they are just beginning to move that way," according to Keating.