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Satyajit Das

Could the Fed Set Off a Debt Bomb?

Tighter monetary conditions will squeeze borrowers.
Fed officials are sounding happily hawkish.

Fed officials are sounding happily hawkish.

Photographer: Brooks Kraft/Getty Images

The U.S. Federal Reserve minutes released Wednesday show that central bank officials are increasingly committed to raising rates and shrinking the bank’s balance sheet. While economic signs remain mixed, continued growth, rising inflationary expectations, tightening labor markets and the need to temper asset prices would all seem to argue in favor of higher rates.

QuickTake The Fed Lifts Off, Slowly