Image Credit: Chip Somodevilla / Staff / Getty The Federal Reserve’s Federal Open Market Committee (FOMC) last week left the target policy interest rate (the federal funds rate) unchanged at 5.5 percent. This “pause” in the target rate suggests the FOMC believes it has raised the target rate high enough to rein in price inflation which has run well above the Fed’s arbitrary two-percent inflation target since mid-2021. I say “believe,” but perhaps the more appropriate word here is “hope.”
That is: the Fed hopes it has raised the target interest rate high enough. Moreover, the Fed hopes this […]
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