A weekend article in the Wall Street Journal from Jon Hilsenrath:
- Fed likely to raise their benchmark rate on Wednesday
- Expecting to slowly ratchet it higher to above 3% in three years
- But ... Their big worry is they'll end up right back at zero
Any number of factors could force the Fed to reverse course and cut rates all over again: a shock to the U.S. economy from abroad, persistently low inflation, some new financial bubble bursting and slamming the economy, or lost momentum in a business cycle
What Hilsenrath is saying in the piece is nothing new or shocking. But its attracting a bit of interest as markets begin to open for the week, a minor negative for the USD.
The Journal is gated: Fed Officials Worry Interest Rates Will Go Up, Only to Come Back Down