Fed’s Slow Pace on Interest Rate Hikes Will Lead to More Inflation and Then Recession

Fed’s Slow Pace on Interest Rate Hikes Will Lead to More Inflation and Then Recession
The Federal Reserve building in Washington on May 1, 2020. Kevin Lamarque/Reuters
Michael Busler
Updated:
Commentary

At their March meeting, the Federal Reserve decided to raise interest rates a meager 0.25 percent. That hike will do little to head off the upcoming double-digit price increases that will begin before summer starts. The Fed’s shockingly irresponsible behavior will do little to reduce inflation. And because of their weak position, when they finally take more drastic action, a recession could follow.

Michael Busler
Michael Busler
Author
Michael Busler, Ph.D., is a public policy analyst and a professor of finance at Stockton University, where he teaches undergraduate and graduate courses in finance and economics.
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