- Latest consumer price index shows core CPI rose 0.5% from a month earlier, putting it around 5.2% on a three-month annualized basis.
- Expectations for higher interest rates have been written off after the collapse of Silicon Valley Bank.
- Goldman Sachs and Barclays economists changed forecasts to reflect no change by the Fed.
- Fed's credibility would be undermined if it suspends the inflation fight now.
- Common sense now favors a 25-basis-point increase in the Fed’s target range next week.
If the Fed Fails to Raise Rates, It Will Be a Sign of Panic
The Fed should take a more proactive approach to inflation and not suspend the fight now, to avoid undermining its credibility and sending a negative message about financial stability. Common sense now favors a 25-basis-point increase in the Fed’s target range next week.