Fed’s discourse

fed decision

The Fed’s discourse obliges it to raise rates

In a few days the Fed will meet and, inevitably, will raise interest rates. It is inevitable because it would contradict its discourse if this doesn’t happen. In the short-term it is unlikely to present any problems, because the move is already discounted. But there is something worse: there is the risk that the Fed makes a mistake which it later has to rectify, as has happened in other countries. Sweden is the main example.