Markets Analysis: Three Reasons the Fed Is Raising Interest Rates

President Trump has put the Federal Reserve at the middle of the latest drop in the markets, saying the "Fed has gone crazy." WSJ global economics editor Jon Hilsenrath explores three reasons why the Fed is raising interest rates. Photo: Getty Images.

More from the Wall Street Journal:

[samuelpezzetta]

Central bank independence is very important.

[SupaNova]

Wow I didn't expect the WSJ to have so many youtube subscribers. I figured it would be under 100k. Surprising for sure.

[taxsi]

3rd reason contains a circular argument. Economy is growing, so >3% growth rate allows more than 2% interest; therefore we raise the rates.. What does this supposed to prove? Why people are condemned to pay higher interest rates when they are buying houses or getting loans for investment? Is it because some other guys make easier money with higher rates?..

[RBGHfam]

Can someone please explain why a private bank that *isn't apart of our government* has this much power over the value of our money again?

[Jebusmike]

Ok, got it; the Federal Reserve is the good guy now.

[fellypeBDR]

Central banking ending, And Free choice currency is really important, control of prices by a central entity doesn't work, control of interest too. Fractional reserve is a fraud.

[userscnamesux]

So why did the Dow lose 1300 points in the last week?

[TheStewieGriffinShow]

There is no reason to continue raising interest rates. 1. Gas prices have gone way up and will control spending. 2. Productivity is doing its job helping to control inflation. 3. There is no data to show that inflation will go above 2%.

The FED has lost it just like liberals.

P.S. I have an undergraduate degree in Economics from professors at USC and a graduate degree in Behavior. Jon Hilsenrath's graduate degree is in Journalism, and I would love to know what his undergraduate degree is in.

[MrChadwke]

If you're listening to Trump for financial insight, you're going broke. lol

[qncsc]

inflation ... wage inflation? ha ha ha ....
wages have been stagnant for decades. reports are continuously coming out where 50% of the population is one paycheck from "destitution." without wage increases, there is no ability to save, increase savings. the Fed has ensured impoverishment (and delusion) among the broader US, who can barely manage today and have no capacity for accruing long-term stability as debts continue to punish -- debts that cannot be paid down with stagnant wages.

*"natural unemployment rate ... is a lie!* and that is 100% in evidence now.

[boogeymanws]

They're just slowing this train down. Don't wanna derail on that downhill!

[orionx]

Take a Look at The Rothchild publication, The Economist Magazine for January 1988!!! That should explain A the Date on the Medallion around the neck of a Pheonix rising from a pile of paper money and IT'S OCTOBER

[TheStewieGriffinShow]

Jon Hilsenrath's graduate degree is in Journalism, and I would love to know what his undergraduate degree is in. In case nobody noticed, he got it wrong! His liberal logic blew it again...LOL.

[PepsimVideos]

This news organization still exists? Lol