The Federal Reserve shouldn't raise interest rates. That, to me, is a fundamental misreading of the data. Inflation is not a real concern, given the fact that wages are only beginning to rise. The real economy hasn't been doing as well as the statistical data suggests, meaning that most people are barely making enough. Real wages are only beginning to grow (and we haven't established a pattern of sustained real wage growth). Inflation isn't about to spiral out of control, given the weak recovery and the fact there is a ton of deflationary pressures on the economy.
The fear of inflation is overblown. Putting the brakes on the economic expansion now in the hopes of making it a "guided expansion" is ridiculous (and has it ever worked successfully in the past?) As a Republican, I hope the Federal Reserve raises the interest rate (lessening chances of a Hillary win). But speaking strictly, I think it's a foolish policy idea.
This could have very well have been a Paul Krugman blogpost, and you're right of course.
Let's hope that Yellen doesn't make the same mistake Trichet did at the beginning of the European crisis.
