by Kristin Schwab and Sean McHenry
Market Place
Some Federal Reserve officials have signaled recently that they might be closer to making a cut (or two) in the key interest rate they use as a lever to slow down or speed up economic activity. But it’s clear that when the year is out, rates will be in the same elevated range they are now.
At least those high interest rates are doing their inflation-fighting job. Right? It turns out the answer might not be so cut and dried.
“I think almost every single economist I talked to kind of shrugged their shoulders and said, ‘We actually don’t understand the role that interest rates played in this disinflation of the past few years,’” said Rogé Karma, staff writer at The Atlantic.