NPR Interviews Owen on Fed's Interest Rate Hike
Ann Owen, the Henry Platt Bristol Professor of Economics, was interviewed by National Public Radio reporter Colin Dwyer for a segment on All Things Considered titled The Fed Just Raised Its Rate Again. When Will It Start To Hurt Consumers? on Sept. 26. In discussing the Federal Reserve’s increase in interest rates, Ann Owen reminded listeners that interest rates are still very low.
"There's a lot of momentum in the inflation process, and I think there's always a concern that if the Fed waits too long to address inflation, then it becomes more difficult," said Owen. "One of the really difficult things about monetary policy is that it's really hard to know if you're at a turning point in the economy. So they [the Federal Reserve board of governors] are always questioning, 'Is now the time for us to act?' Hindsight is 20/20, but they have to make policy today."
On Oct. 11, Owen was again interviewed about interest rates by American Public Media's Marketplace reporter Kimberly Adams for a segment titled Here's how the Federal Reserve determines the inflation rate. She noted that inflation was at a moderate level, very close to where the Federal Reserve would like to see it. Owen observed that the current inflation rate was an endorsement of the Fed's current plan to continue to raise interest rates very gradually.