Statement | Economic Growth

News from EPI Data support Fed’s decision to keep rates unchanged

We welcome today’s decision by the Federal Open Market Committee to stop the steady increase in interest rates that they have been undertaking since December 2016. The Fed should raise rates when inflation threatens to rise well-above their stated inflation target. Yet inflation has been below-target in nearly every month for the past 5 years, and has actually been decelerating recently. Recent data indicate that the labor market continues to improve, but there is no sign that economic recovery has reached every worker that it can, or that the Fed should shift from worrying about joblessness to worrying about excess price growth. Hopefully today’s decision marks a return to firmly evidence-based policymaking by the Fed.


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