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Ramesh Ponnuru

Worry Less About Inflation and More About Recession

Here are several reasons to be concerned about how the Fed will respond to the next downturn.

Target happy..

Target happy..

Photographer: Chip Somodevilla/Getty Images

Any move by the Federal Reserve is the subject of concern and debate, as it should be. President Donald Trump has gotten involved in that debate, breaking a tradition of recent decades of presidential silence about Fed policy. He is “not even a little bit happy” about higher interest rates. 

Some economists join Trump in thinking that the Fed is raising them too quickly. Others side with the Fed: Harvard professor Martin Feldstein, a longtime adviser to Republican presidents, argues that we need interest rates to be high enough that they can be brought down to stimulate the economy in the event of a recession.