How the Fed Could Lose Its Nerve

As part of its effort to cool down the economy, the Federal Reserve ratcheted up rates on Wednesday. By the time of its next policy-setting meeting in September, temperatures could be a lot lower.

Fed policy makers raised their target-range on overnight rates by 0.75 percentage points on Wednesday, and it is easy to see why. Incoming inflation data remained high since they met in mid-June, with the Labor Department reporting that consumer prices were up by 9.1% from a year earlier last month. And the labor market remained very strong, with the economy adding another 372,000 jobs last month and the unemployment rate remaining at a low 3.6%.

Leave a Reply

Your email address will not be published.