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.

March 15, 2023 . 3:37 PM

1 min read

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.