If it’s the best economy that we ever had, why raise interest rates?

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Trump’s regrets: It’s no wonder that Trump said in his Oct. 23 Wall Street Journal interview: “To me the Fed is the biggest risk, because I think interest rates are being raised too quickly.” As for why he thought Powell was raising rates, Trump said: “He was supposed to be a low-interest-rate guy. It’s turned out that he’s not.” Does Trump regret nominating Powell? It’s “too early to say, but maybe,” the President said. Think of Powell and Clarida as Trump’s regrettables.

I was on CNBC last Friday. My message was: “We need the Fed to pause here and just take a breather. Let’s see how the economy plays out, and that will help the stock market a lot.” I concluded: “Fed officials have been talking like mission accomplished — that it’s the best economy that we’ve ever had. If it’s the best economy that we ever had, why raise interest rates? Why not leave it be if it’s growing with low inflation?”

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Opinion: If the U.S. economy now is the best ever, why raise interest rates?

By Ed Yardeni
Published: Nov 2, 2018 2:54 p.m. ET

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