By Matthew Kerkhoff
The Fed raised its key benchmark rate by a quarter point last Wednesday, and both the stock and bond markets took it in stride. This is largely because expectations for a rate hike were at nearly 100%, making it “business as usual” for this stage of an economic expansion.
But a slew of data suggests that perhaps the Fed should show a bit more restraint in future meetings, as it may begin compromising its ability to meet its own objectives. The main concern, as you might expect, has to do with inflation.