Felix Salmon didn’t like my earlier post, “perhaps the Fed raised rates too much”. Felix writes:
I have no idea where rates ‘ought to be’. I do think, though, that the Fed raised rates too fast (which is a bit different than what I said in my previous item, that they raised too much). Four percentage points in two years means that they were raising rates faster than the economy could react, keeping in mind that it takes 12-18 months for rate changes to have their full effect.