Since Federal Reserve officials last
raised interest rates in July, the economy is doing two things that central bankers don’t think it can sustain much longer: revving up activity and at the same time slowing inflation.It has set off a debate within the central bank about how closely it should follow its traditional models of the economy. The debate is unlikely to affect the outcome of its meeting this week, when the Fed is set to hold interest rates steady to provide more time to see the effects of their rapid increases over the past two years.
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October 29, 2023 at 11:10PM
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Does Strong Growth Fuel Inflation? Fed Debates Whether Old Model Still Applies - The Wall Street Journal
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