Fed needs to hold course for now
At this point in the economy’s recovery from COVID-19, the concern needs to be stagnation, not inflation. Good for Federal Reserve officials for recognizing that. Central banks are looked to for help in situations such as that facing the economy today. By holding down interest rates, they can prime recovery pumps. Low interest rates in the United States are a legacy of the “Great Recession.” Unfortunately, just as it seemed American businesses had roared back into action, with historically low unemployment rates, the coronavirus epidemic hit. Mass closures and slowdowns in ...