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Is the Fed Itching to Raise Rates

After the close on Thursday chatter on the Street had everything to do with whether the Fed would raise rates sooner rather than later.

That rhetoric largely stemmed from a WSJ report which said Narayana Kocherlakota, the president of the Minneapolis Federal Reserve Bank thinks the Fed may need to increase short-term interest rates by year end if underlying inflation rises as he anticipates.

The paper also said, two other regional Fed presidents with votes—Charles Plosser of Philadelphia and Richard Fisher of Dallas—have expressed concerns about inflation and suggested they would favor raising rates in the near future.

Two of CNBC’s Fast Money traders Brian Kelly and Karen Finerman don’t see rates rising for at least 6 months.

Both remind that the Fed presidents mentioned above are much more hawkish than Ben Bernanke.

”This is a (probably) policy to prep the market for the possibility (of a rate hike),” adds trader Zach Karabell. “But it’s probably a 2012 or maybe late 2011 event," he says.


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Trader disclosure: On March 31, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Karabell Owns (AAPL); Karabell Owns (GS); Karabell Owns (MON); Karabell Owns (POT); Karabell Owns (RIMM); Finerman's Firm owns (AAPL); Finerman's Firm owns (FDO); Finerman's firm owns (JPM); Finerman's firm is long (JPM) Leaps; Finerman's firm and Finerman owns (MSFT); Finerman's Firm owns (IWM); Finerman Firm owns (SPY); Finerman's Firm owns (MDY); Finerman's Firm owns (XRT); Finerman's firm is long russell 2000 puts; Finerman's firm is long s&p 500 puts; Terranova owns ( C); Terranova owns (GS); Terranova owns (VRTS); Terranova owns (JPM); Terranova owns (UPL); Terranova owns (MS); Terranova owns (PBR); Terranova owns (BAX); Terranova owns (TEVA); Terranova owns (IBM); Terranova owns (XOM); Terranova owns (JNPR); Terranova owns (AKAM); Terranova owns (DIS); Terranova owns (CVI); Terranova owns (RSX); Terranova owns (CNQ); Terranova is long (AAPL) April 350 puts

For Brian Kelly
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For Joe Terranova
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Tim Seymour SOT 3/2/11
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For Brian Stutland
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