3 Reasons Why the Fed Wants to Keep Raising Interest Rates

Author
Martin S. Feldstein
Content Type
Commentary and Analysis
Institution
Belfer Center for Science and International Affairs, Harvard University
Abstract
Earlier this month, the Federal Reserve’s policy-setting Federal Open Market Committee voted unanimously to increase the short-term interest rate by a quarter of a percentage point, taking it from 2.25% to 2.5%. This was the fourth increase in 12 months, a sequence that had been projected a year ago, and the FOMC members also indicated that there would be two more quarter-point increases in 2019. The announcement soon met with widespread disapproval.
Topic
International Affairs, Financial Markets
Political Geography
Global Focus