At its September meeting, the Federal Reserve again sharply increased its target interest rate by three-quarters of 1%. Asked his thoughts about what effect this tightening would have on the overall economy, Chairman Jerome Powell remarked, “I wish there were a painless way … There isn’t.” Actually, there is a painless way: stop raising rates. Otherwise, we may lower inflation at an unacceptable cost.
The Fed’s moves represent a broad consensus that high inflation imperils the stability of the system, erodes living
