Editorial Board
For the Fed, Doing Nothing Is the Greater Risk
A painful recession would be no fun, but entrenched inflation would be worse.
No time to relax.
Photographer: Win McNamee/Getty ImagesGiven the signals coming from the Federal Reserve lately, one might think its battle with inflation will soon be coming to an end. Markets expect — and multiple officials have hinted — that the central bank will pause interest-rate increases at this week’s policy meeting, to ensure it doesn’t tighten excessively.
It’s a mistake in the making. Backing off too soon remains the far greater risk.