Fed Should Consider Slowing Economy Before Raising Rates Again

Printer-friendly version
March 31, 2017

The Federal Reserve has plans to increase interest rates at least three times this year, but that might not be the best course of action.

Pedro Nicolaci da Costa of Business Insider reports that the U.S. economy isn’t faring as well as it’s being portrayed. Stocks are up and business leaders are confident, but economic growth has actually slowed since last September. Plus, the Trump Administration’s proposed fiscal stimulus isn’t expected to boost growth anytime soon.

"A moderate rise in inflation at the start of the year was more than enough justification for a March rate hike," said Lindsey Piegza, chief economist at Stifel, Nicolaus & Company. "However, going forward, a continued lackluster growth profile will make it increasingly difficult to suggest additional rate hikes are warranted, particularly if energy prices stabilize in the coming months, removing the upward support to headline price measures."

Read more

Comments on: "Fed Should Consider Slowing Economy Before Raising Rates Again"

July 2017

This Month in Professional Builder

Products
Features

Ashton Woods launched Starlight Homes to target entry-level home...

Overlay Init