Inflation Puts the Fed On Its Heels

The economy is holding up well, but the central bank needs to get out in front of its biggest challenge.

Wonder Land: Republican presidential hopefuls Ron DeSantis, Mike Pence, Nikki Haley, Tim Scott, Chris Christie, Vivek Ramaswamy and maybe even Donald Trump are united on spending. All offer a much safer future than the alternative. Images: Reuters/Zuma Press Composite: Mark Kelly

The Federal Reserve has finally raised interest rates above the rate of inflation, but monetary policy isn’t as tight as it needs to be. With fiscal policy in disarray, the central bank must persevere in reducing inflation to its 2% long-run target and correcting its course to a credible and reliable monetary policy. The Federal Open Market Committee should raise rates again at its meeting this week and reinforce its low inflation objective.

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