Fed shouldn’t normalize rates before the economy is back to normal

Author Michael Madowitz argues that the Federal Reserve System should think about the real economy when planning its path for the next year.

We’re about to find out the price of gradualism for the Fed.

We shouldn’t overreact to short-term signals, but a good month of jobs data and a Federal Open Market Committee statement with the subtlety of a sledgehammer suggest that even though economic data say that a rate hike is inconsistent with the Fed’s long-term positions, an increase is nevertheless looking pretty likely next month.

The above excerpt was originally published in MarketWatch. Click here to view the full article.

The positions of American Progress, and our policy experts, are independent, and the findings and conclusions presented are those of American Progress alone. A full list of supporters is available here. American Progress would like to acknowledge the many generous supporters who make our work possible.