Steve K. Beckner is a senior correspondent for Market News International. He is heard regularly on National Public Radio and is the author of “Back From The Brink: The Greenspan Years.”
As the FOMC said in mid-June after raising the Federal Funds rate for the second time this year, but just the fourth time since leaving the zero lower bound in December 2015, “monetary policy remains accommodative, thereby supporting some further strengthening in labor market conditions and a sustained return to 2% inflation.”
After making just three modest interest rate hikes since abandoning a seven-year stay near zero, the Federal Reserve can scarcely be accused of having a tight credit stance. As the rate-setting Federal Open Market Committee reiterated when it took the federal funds rate up 25 basis points in mid-March, “monetary policy remains accommodative.”
