Mixed Signals

Published



THE ECONOMY avoided two looming problems last week. First, the Federal Reserve Board’s monetary policy committee decided not to bow to pressure from the housing industry and some investors. Ben Bernanke and colleagues refused to announce a halt in its series of interest rate increases. Instead, they took short-term rates to 5 percent, its 16th consecutive quarter-point increase. More important, the Fed pointed out that “some policy firming may yet be needed to address inflation risks,” and then added the unexceptionable statement that it would study incoming data before deciding what to do at its next meeting. I would hope so, the alternative being to ignore the deluge of new data that will become available when the monetary policy committee again reviews its interest rate policy next month.

Trusted reporting.Unlimited access.

Subscribe for full access to Washington Examiner coverage, expert political analysis, and subscriber-only journalism.

Get Unlimited Access

Already a member? Log in

Cancel anytime.