Interest Rates And Fed Tightening

Summary

  • After a series of hikes, the Fed’s short-run interest rate target lies between 3.0 and 3.25 percent.
  • The problem with Fed policy isn’t excessive tightness, it’s excessive inscrutability.
  • Don’t expect a smooth ride, let alone a soft landing, until the Fed takes concrete steps to restore its lost credibility.

Clamp squeezing roll of U.S. 100 dollar bills

John Blottman

By Alexander William Salter

Is the Federal Reserve significantly tightening monetary policy? The conventional wisdom says yes. After a series of hikes, the Fed's short-run interest rate target lies between 3.0 and 3.25 percent. Many commentators are worried about turbulent asset markets

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