The Fed’s Half-Hearted Attempt at Monetary Tightening

Posted by on March 20th 2017 in Uncategorized | Be the first to comment!

By Thorsten Polleit By: Thorsten PolleitOn 15 March, the Federal Reserve (Fed) raised the federal funds rate by 0.25 basis points, bringing the band of the official rate to 0.75 – 1.00 percent. The move was widely expected. However, the market seemed surprised when the Fed reaffirmed that it would stick to its plan to raise rates no more than three times this year because inflation has already taken off. In February, the consumer price index was up 2.7 percent compared to last year, while the “core inflation rate” stood at 2.2 percent — well above the 2 percent mark typically seen as …read more

Source:: Mises Daily

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