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Hike They Shouldn’t
Does today’s good job report mean that the Fed will raise rates next month? Probably yes. Does it mean that the Fed should raise rates? Definitely not. The arguments against an early rate rise remain compelling, and shouldn’t be abandoned based on one month’s data. First of all, some perspective: while wage growth has picked up, it’s still well below pre crisis levels; core inflation is also still below the Fed’s target. And here’s the thing: there’s very good reason to believe that the pre-crisis target was too low. The Fed used to think that 2 percent inflation was high enough to make the chances of ... (full story)
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- Nov 6, 2015 1:54pm Nov 6, 2015 1:54pm
- vectorinfo
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