Top Ten Reasons the Fed Raises Interest Rates When There Is No Inflation

This article was first published by me on Talkmarkets: http://www.talkmarkets.com/content/us-markets/top-ten-reasons-the-fed-raises-interest-rates-when-there-is-no-inflation?post=117992&uid=4798 Why would the Fed raise interest rates where there is little inflation? This is an important question to ask, I think, because the Fed is tightening rates while tax revenue is down and while any tightening could throw the nation into recession. I believe there are at least ten top probable reasons why the Fed is raising rates, starting with the December, 2016 increase: 1. The Fed is misreading the effective demand limit, as assessed by Edward Lambert. Christmas shopping was below par and should sound a warning. The chart by professor Lambert explains the effective demand limit and the closing of the business cycle. Inflation is simply not a concern to Dr. Lambert: By Permission of Edward Lambert 2. The Fed cannot raise rates significantly to stop rising inflation later on