The Fed provided a clear signal about increasing interest rates in the near future. I think they are late to the party and I think there is one big reason to worry about an overshoot.
A caller asked me about the necessity of interest rate decreases for the economy. I answered on air, and expand on that answer a bit here.
The Federal Reserve seems likely to continue raising rates into the foreseeable future making it a likely candidate for the ire of President Trump. The irony is that the President’s own trade policies likely make the Fed take actions to increase rates.Continue reading Trade Policy, Fed Policy, and North Dakota
In what may be the most telegraphed monetary policy move in history the Federal Reserve raised rates today by 0.25% (here is an article). The great wailing and gnashing of teeth predicted by all the Chicken Littles seems not to have come to pass though. I have been saying this on JT’s show for the better part of a year now: If the economy is so fragile that a 0.25% increase in rates is a threat to economic growth than we have bigger issues.