Raising Rates, Wildcard Policy, and the Fed's Fumbling Dance The Federal Reserve's decision to raise interest rates, accompanied by an ominous forecast for further hikes, sent shockwaves through financial markets last week.
The move marked a reversal from earlier expectations that the Fed would adopt a more accommodative stance under new Chairman Kevin Warsh. This shift in policy is not unprecedented.
In recent years, the Fed has struggled to balance its dual mandate of full employment and price stability.