Federal Reserve: We got it ‘wrong’ on post-crisis rate hikes

Current and former Federal Reserve officials say the timing of its interest rate hikes between 2015 and 2018 may have been a mistake, a rare moment of humility spurred by the Fed’s adoption of a new framework for approaching inflation.

Lael Brainard and Richard Clarida, both serving on the Fed’s Board of Governors, said this week that the Fed may have curbed a quicker post-2008 recovery in the job market by lifting off of zero interest rates too soon.

“There would have been a different concept of inflation, and a sense that there was no need to preemptively withdraw, or prepare to withdraw, on the basis of an expectation of inflation materializing,” Brainard said in a webinar Tuesday.

https://finance.yahoo.com/news/federal-reserve-we-got-it-wrong-on-postc…