The Fed wants to raise interest rates. But can it?

The 2008 economic collapse changed the Federal Reserve's relationship with the economy so much that the Fed's own power may be diluted

The Fed raised interest rates for the first time in a decade.
(Image credit: Gary Waters/Ikon Images/Corbis)

Wednesday was a momentous day for the nation's economy: The Federal Reserve raised interest rates for the first time in a decade.

At least, it said it wants to raise them. "The committee decided to raise the target range for the federal funds rate" to 0.25 to 0.5 percent, the Fed's statement said. "Target" is the key word there. While the Fed has considerable influence over interest rates in the economy, its powers are not godlike. The Fed is engaged in a complex pull and push with the natural forces of the economy. So while the Fed's ability to make interest rates do what it wants is generally assumed, it's not a given.

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Jeff Spross

Jeff Spross was the economics and business correspondent at TheWeek.com. He was previously a reporter at ThinkProgress.