[Economics] Isn't It Time For FED To Raise Rates Yet?

[Neo-Logic]

In the last speech by Bernanke in Massachusetts, he suggested that the FED wasn't in a hurry to hike up rate in response to inflation.

The lower fed fund rates haven't done wonders for the economy. Mainly it's because oil is priced in dollars. With inflation on the rise, oil increases resulting in the higher gas prices which ripples across the economy in the form of higher prices in consumer goods. With higher price of gas, it also forces people to travel less and churns down the cycle.

On the other hand, if we increase the fund rates, the dollar will become stronger with inflation going down. This will mean:

-bonds markets will pick up with less fear of inflation = better rates
-price of oil will decrease = lower gas prices
-low gas prices = lower consumer prices across the economy

With lower gas prices, price of goods, and rates, consumers will respond by spending and will hopefully put or GDP on the right track.

So what's stopping us???