One has to wonder if the Fed wants to drive the economy into another recession.
As rates increase borrowing costs for everybody including the Federal government goes up.
With a sharp rise in U6-broadest measure of unemployment and underemployment- in the last two months (14.3% to 15.2%), a 36% decline in GDP growth from the same period in 2012. a disappointing 162,000 jobs created in July, a disappointing .2% increase in retail sales, new that low-paying sectors accounted for 60% of the jobs in July, and ranks of part-times swelling by 791,000, one wonders if the Fed wants to stop the economy dead in its tracks.
Additionally, the Commerce Department said that retail inventories outside of the auto sector unexpectedly dipped in June, which suggests that second quarter economic growth might have been a little weaker than the 1.7 percent annual rate reported last month. Overall inventories were flat.