Soothsayers On The Decline
The federal reserve raised short-term interest rates again last week, increasing the “Fed Funds” rate to 6 percent. The Fed has increased the rate seven times, a full 3 percentage points, in the past year to slow the economy and prevent higher inflation. Is the latest increase overkill? Stalking phantom inflation, will the Fed trigger a slump? The answer is that no one can tell. There’s no exact science to say when rates should and shouldn’t be increased....