Fed Raises Interest Rates to 16-Year High, as Economy Falters

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Fed Raises Interest Rates to 16-Year High, as Economy Falters
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Federal Reserve officials signaled they might pause raising interest rates now after approving another increase at their meeting that concluded Wednesday.

“People did talk about pausing, but not so much at this meeting,” Fed Chair Jerome Powell said at a news conference. “We feel like we’re getting closer or maybe even there.”

The unanimous decision marked the Fed’s 10th consecutive rate increase aimed at battling inflation and brings its benchmark federal-funds rate to a range between 5% and 5.25%, a 16-year high.

Where current inflationary pressures appear to be tied to excessive Monetary stimulus out of the Fed, not due to an overheating economy, still higher interest rates, now, would do little to contain inflation, while at the same time, higher interest rates would continue to impair economic activity.https://www.wsj.com/articles/federal-reserve-raises-rates-signals-potential-pause-eb264784

 the “problem” inflation largely is being driven by the FOMC’s still explosive Money Supply and System Liquidity growth, not by an overheating economy. Consider that March 2023 “Basic M1” (Currency plus Demand Deposits [Checking Accounts]) gained anew, month-to-month, still holding at 120.5% above, albeit somewhat shy of the peak 122.5% above its February 2020 Pre-Pandemic level. Separately, the inflation issue is complicated by independently rising gasoline prices, not by any overheating economy!

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