“Federal Reserve microphone” Nick Timiraos: The Fed almost never raises interest rates once to announce the end. This means that if interest rate hikes are taken this time, outsiders will ask: What goals does the central bank think the austerity policy should achieve. Is this rate hike the beginning of a cycle of austerity aimed at slowing the economy? Or, given that the economy has been hit by multiple shocks one after another, and the inflation trend continues to fall short of expectations, this rate hike is just a precautionary measure to prevent the risk of inflation — just like last year's interest rate cut to counter the risk of a sharp decline in the labor market? Or is this a policy move of a completely different nature?

“Federal Reserve microphone” Nick Timiraos: The Fed almost never raises interest rates once to announce the end. This means that if interest rate hikes are taken this time, outsiders will ask: What goals does the central bank think the austerity policy should achieve. Is this rate hike the beginning of a cycle of austerity aimed at slowing the economy? Or, given that the economy has been hit by multiple shocks one after another, and the inflation trend continues to fall short of expectations, this rate hike is just a precautionary measure to prevent the risk of inflation — just like last year's interest rate cut to counter the risk of a sharp decline in the labor market? Or is this a policy move of a completely different nature?