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