Bolder action by Fed needed on inflation

TO THE EDITOR:

Regarding the editorial “Fed needs to stop interest rate hikes,” autonews.com, Sept. 10: The Federal Open Market Committee has not been aggressive enough, even with 11 rate increases. Inflation went up in August compared to July. The timidity and timing are exactly why the rates will be higher for longer. Additionally, the forecast the Fed shared shows that rates approximately 50 basis points higher will stay in place over the next two years.

Previously, the committee had discussed rates beginning to drop in June 2024. Now, it is likely that rates will stay higher through 2025. This will have negative impact on consumers, who have seen shelter costs increase for 40 months in a row and food and energy costs continue to rise.

Being timid in addressing the inflationary pressures will hurt the economy longer.

CHUCK JONES, Dahlonega, Ga.
The writer is the retired COO of Truist Dealer Financial Services.