Why wait? The Federal Reserve should raise interest rates now

Why wait? The Federal Reserve should raise interest rates now

Inflation is expected to continue ripping along. At its policy-making meeting later this month, the Federal Reserve should move to tighten monetary policy much more quickly than it indicated at its December meeting.

Headline inflation is running at 6.8%—the fastest pace in four decades.

MarketWatch

Since early November, gas prices RB00 have eased modestly but that’s after rising about 85% from their pandemic low. And gasoline, heating fuels and other energy only account for about 7.5% of the consumer price index.

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Rents are rising

Apartment rents and the imputed rent on owner-occupied homes constitute about one-third of the index and real-estate values are rising at nearly a 20% annual pace. However, owing to the logistical difficulties of canvassing landlords and homeowners, those price changes are factored into the CPI with a long…

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