America’s central bank picks a poor time to get hawkish

By The Economist online

THE members of the Federal Reserve’s monetary-policy making committee have been desperate to hike rates, often, for most of the past year. They were keen to begin hiking in September, but were put off when market volatility threatened to undermine the American recovery. In December they managed to get the first increase on the books, and committee members were feeling cocky as 2016 began; Stanley Fischer, the vice-chairman, proclaimed that it would be a four-hike year. Instead, markets spent the first two months of the year in a near panic, and here we are in mid-May with just the one, December rise behind us.

But the Fed is feeling good about the state of the state of the economy and is ready to give higher rates another chance. Over the last few weeks, every Fed official to wander within range of a microphone warned that more rate hikes might be coming sooner than many people anticipate. And yesterday the Fed published minutes from its April meeting which were revealing: “Most participants judged that if incoming data were consistent with economic growth…

Read more here:: The Economist – Economics