Fed Chair Jerome Powell said the rate hike pause will give officials more time to evaluate the effects rate hikes have had on the economy so far.
But he left the door open for the possibility of more rate hikes at future meetings.
“Every time they relaxed rates inflation would ratchet up,” said Michael Bordo, an economics professor and director of the Center for Monetary and Financial History at Rutgers University.
Many economists agree the Fed is not confronting the extreme dilemma Paul Volcker faced during his time as Fed Chair from 1979 to 1987.
The Fed’s pause “doesn’t necessarily have adverse implications for inflation,” he said.
Persons:
Jerome Powell, ” Powell, ”, Michael Bordo, Paul Volcker, “, Donald Kohn, Powell, Bordo, George Selgin
Organizations:
New, New York CNN, Federal, Center for Monetary, Rutgers University, Fed, CNN, Cato Institute
Locations:
New York