The Economy in Perspective
Wear sunscreen … The Federal Reserve raised the target federal funds rate one-quarter of a point to 5% at its June policy meeting. This action, however widely expected, was not universally endorsed. Immediately before the Federal Open Market Committee meeting, some observers questioned the need for a rate hike. After all, inflation has been fairly stable during the past year, and has actually declined on average over the past several years. The April CPI report flashed caution, but May’s release restored a sense of calm. And some analysts claimed that the combination of vigorous economic growth and low unemployment— which was associated with accelerating inflation during some earlier expansions— no longer posed a clear and present danger.
Suggested citation: "The Economy in Perspective," Federal Reserve Bank of Cleveland, Economic Trends, no. 99-07, pp. 01, 07.01.1999.