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

Authors

  • Michael Madowitz

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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Authors

Michael Madowitz

Economist