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."