The Conversation - Is the Fed's job finished?

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If you’re hoping to borrow cash in the coming months, you got a bit of relief yesterday. The Federal Reserve put its aggressive interest rate campaign on hiatus as it takes a beat to see how close it is to its goal of driving inflation down to around 2% – from 4%-5% today, depending on how you measure it.

The question on everyone’s mind remains: Is the Fed finished? If you ask the central bank, it might say “not quite,” as it has signaled two more quarter-point rate hikes this year. But if you ask Ryan Herzog, an economist at Gonzaga University, the answer is decidedly “yes.”

Herzog explains why he thinks the inflation data shows the Fed is closer to its goal than it might appear – and why further rate hikes could do more harm than good.

[Science from the scientists themselves. Sign up here to weekly science email.]

Bryan Keogh

Deputy Managing Editor and Senior Editor of Economy and Business

Time to press the stop button? iStock/Getty Images

Why the Federal Reserve’s epic fight against inflation might be over

Ryan Herzog, Gonzaga University

The Fed said it’s pausing its aggressive rate-hiking campaign as it collects more data on the impact.

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